6

Assets

Fixed assets

Excel functions

Existing assets

New asset depreciation

Written down value

Asset summary

Tax depreciation

Summary

FIXED ASSETS

This chapter shows how to build asset tables as defined working areas to provide the inputs to income statements and balance sheets. The fixed assets bear a relationship to sales since on-going investment is essential to produce future profits and cash flows. This is not necessarily a linear relationship, but it may be stable if the pattern of sales and costs do not change markedly over time. In a simple model, fixed assets could be related in a fixed assets turnover ratio derived from sales/fixed assets. The control sheet contains a schedule of asset purchases and this schedule seeks to derive ...

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