Question

sales of zing ltd. for 2016 was 100000, cogs rs 6000 depreciation of rs 1000 interested rs 800 tax rate 30% calculate the operating cash flows of zing ltd. for 2016
A) 4000
B) 1540
C) 2540
D) 2200

Answer 1

Answer:

Under written down value of method of charging depreciation, depeciation is calculated on WDV as follows:

Original cost Rs. 600000

Less : Depreciation @ 10% p.a. (60000)

Written Down Value 540000

Less : Depreciation @ 10% p.a. (54000)

Written Down Value 486000

Less : Depreciation @ 10% p.a. (48600)

Written Down Value 497400

Depreciation in third year under WDV method is Rs. 48600