June 2014 Q2 Burung Co

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November 22, 2018 at 1:06 pm #485504
davidlemonhhl
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Hello sir,

In calculating the cash flows in this question, why the tax allowable depreciation is not added back, after calculating the tax?

Thanks.
November 23, 2018 at 9:00 am #485568
John Moffat
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In the cash flow calculations, depreciation has not been subtracted, and therefore it has not been added back!

The depreciation has been taken into account in the calculation of the tax flows, but these are separate workings.
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