Page 2 - Savings or additional costs from operations
Add the incremental depreciation for the plant, property
and equipment (PPE) you will purchase. This tax adjustment,
depreciation reduces taxes, favors action plans with newer equipment
and more depreciation
available over older equipment with less depreciation left. Use your
company's standard method to determine depreciation.
equipment you already owned is accounted for in the gross margin.
Investments in fixed and working capital each year
additional capital investment in plants, property or equipment. If you
will sell an asset, add it here.
Subtract investments in working
capital (increases in inventory, accounts payable and accounts receivable)
that are needed for the incrementalsales each
If you expect
savings, add the dollar amount here. Be conservative,
numbers, from previous periods of sales growth
or cut backs, to make the estimates.