No
How should depreciation be handled in a non profit budget?
yes
There is no affect of depreciation on cash flow that's why in indirect method of cash flow net income is adjusted for depreciation to calculate cash flow from operating activities.
Depreciation is not part of cash budget as this is not cash expense rather it is just the allocation of fixed asset cost to specific fiscal year in which that fixed asset is used so there is no cash outflow due to depreciation and that’s why it is not included.
No
How should depreciation be handled in a non profit budget?
yes
There is no affect of depreciation on cash flow that's why in indirect method of cash flow net income is adjusted for depreciation to calculate cash flow from operating activities.
Depreciation is not part of cash budget as this is not cash expense rather it is just the allocation of fixed asset cost to specific fiscal year in which that fixed asset is used so there is no cash outflow due to depreciation and that’s why it is not included.
Please refer to the following Web site for a complete explanation on how depreciation affects the cost of capital: http://en.wikipedia.org/wiki/Depreciation
Exchange rates depreciation affect the south African economy because it leads to changes in inflation in the country' economy .
Depreciation lowers the value of your assets. This in turn will lower your overall profit margin as well as your net worth.
First of all capital expenditure should be estimated and after that on the basis of fixed assets purchase assumption depreciation can be calculated.
Depreciation does affect cash flow indirectly. Using different methods of depreciating an asset will impact the depreciation expense.Even though depreciation expense is non-cash transaction, it indirectly affect cash flow through the income tax effect. Having higher depreciation expense can lower your taxable income, thereby reducing your income tax expense, which will change your cash outflow for taxes.
depreciation is a non cash item which have no physical outflow ... when depreciation is applied on tax cash flow it saves tax resulting in decrease in cash outflow
it will affect our country by not letting the budget get control.