Introduction: For a company to carry out business profitably, the selling price and the cost price are not the only factors. Taxes, Depreciation, Un-collectibles, Inventory & Supply Chain etc. are just a few parameters which can cause a profitable company to undergo losses and vice-versa. We consider here two cases where companies are helped by financial consultancy
Let us first consider the case of Mr. Paul Raines of Atlas Construction Co
Computation of depreciation
Depreciation by the straight-line method and MACRS are shown below in separate columns.
Straight line method Accelerated Recovery(MACRS) _____________________________________________________________________
The depreciation figures for both the straight-line method and the Accelerated recovery Method, are given