Hello Sir!
I'm having problems in computing the depreciation and addition amount which can then be inserted into free cash flow computation.
I solved this way,tell me where I could be wrong:
Depr =10% on the year end non current asset balance before accumulated depreciation (stated in the question)
10% * 1266 =127
let the additions amount be 'x'
1266 + x = 127 + (1266*1.20)
1266 + x = 127 + 1519
x (additions)= 380
Please help clarify my confusions.
Thank you.