For companies with no debt and thus no interest expense, NOPAT is equal to net-profit-1. In other words, NOPAT represents the company's operating profit that would accrue to shareholders (after taxes) if the company had no debt.See also nopat
NOPAT determines the amount of profit the business has pulled in despite taxes. This indicator is very useful since it is not skewed by tax shelters. NOPAT=Net operating profit after taxes.
Depreciation don't have any impact on cash flow statement as there is no cash inflow or outflow due to depreciation that's why in indirect method net income is adjusted for depreciation to arrive at actual cash flow.
Depreciation policy is management thing that what depreciation method to use and how much depreciation to charge to each asset. Depreciation concepts are concepts which govern the depreciation process which management cannot change they are universal rules to follow depreciation that how straight line depreciation work etc.
Debit depreciation accountCredit accumulated depreciation
NOPAT = NOPLAT - Change in Deferred Income Taxes
For companies with no debt and thus no interest expense, NOPAT is equal to net-profit-1. In other words, NOPAT represents the company's operating profit that would accrue to shareholders (after taxes) if the company had no debt.See also nopat
NOPAT determines the amount of profit the business has pulled in despite taxes. This indicator is very useful since it is not skewed by tax shelters. NOPAT=Net operating profit after taxes.
NO
No it doesn't include
yes
Depreciation don't have any impact on cash flow statement as there is no cash inflow or outflow due to depreciation that's why in indirect method net income is adjusted for depreciation to arrive at actual cash flow.
Depreciation of any asset is charged to income statement till the actual date of disposal of asset and after that date depreciation is not charged to income statement.
Accumulated depreciation and depreciation are related with each other as depreciation is annual expense while accumulated depreciation is the sum of all annual depreciation expenses.
Accumulated depreciation and depreciation are related with each other as depreciation is annual expense while accumulated depreciation is the sum of all annual depreciation expenses.
Depreciation expenses is for one specific fiscal year while accumulated depreciation is the sum of all depreciation expenses that’s why accumulated depreciation exceeds the depreciation if there is depreciation expense in prior year as well.
You have to know that Gross includes Depreciation... And market price includes all the taxes... So...for calculation.. You have to add depreciation to domestic income, i.e; NDP at FC + depreciation....you will now get GDP at FC... Factor cost doesn't include Net Indirect TAX...so you have to add that...and you'll get the answer.... NDP at FC + depreciation + NIT = GDP at MP