Link to www.clintburdett.com

Google logo www.clintburdett.com Web

Page 2 - Savings or additional costs from operations

Graphic of new equipmentDepreciation

Add the incremental depreciation for the plant, property and equipment (PPE) you will purchase. This tax adjustment, depreciation reduces taxes, favors action plans with newer equipment and more depreciation available over older equipment with less depreciation left. Use your company's standard method to determine depreciation.

Depreciation for equipment you already owned is accounted for in the gross margin.

Investments in fixed and working capital each year

Graphic of moving inventorySubtract the additional capital investment in plants, property or equipment. If you will sell an asset, add it here.

Subtract investments in working capital (increases in inventory, accounts payable and accounts receivable) that are needed for the incremental sales each year. If you expect savings, add the dollar amount here. Be conservative, use historical numbers, from previous periods of sales growth or cut backs, to make the estimates.

previous page Benefits and costs Page 2

 

Page 2 CFo and Value Added next page

 



Privacy Policy | Table of Contents | Contact Us   Google+