XYZ Ltd. has a revenue of Rs. 8,00,000 and it has provided for depreciation at
10% SLM method. It has cash expenses of R.2,00,000. The taxes are 50% p.a.
show the net earning on accounting approach basis and cash flow basis
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Answered by
152
XYZ Ltd. has a revenue of Rs. 8,00,000 and it has provided for depreciation at 10% SLM method. It has cash expenses of R.2,00,000. The taxes are 50% p.a. show the net earning on accounting approach basis and cash flow basis.
Answered by
28
Revenue= 800000
Depreciation= 10% of revenue
= 10 X 800000 / 100
= 80000
=Revenue - Depreciation
= 800000 - 80000
= 720000
Cash Expenses = 200000
= Revenue - Expense
= 720000 - 200000
= 520000
Taxes = 50%
= 520000 X 50%
Net Earning = 260000
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