Project the Depreciation expense for the year FY2020 using average Depreciation divided by NetPPEt-1 You...
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Accounting
Project the Depreciation expense for the year FY2020 using average Depreciation divided by NetPPEt-1
You are an intern with an equity research organization. You have been given the task to project the values of certain income statement and balance sheet items for the next year (FY2020) for ABC Ltd (Your current time=0 is FY ending 2019). You have collected information about the historical income statement and balance sheet items. The historical information is provided in Table 1.
Table 1
PARTICULARS (All values in INR crores)
FY2019
FY2018
FY2017
FY2016
Sales Revenue
17273.00
15463.00
14789.00
13636.00
EBITDA
12213.00
9385.00
10237.00
Not given
Depreciation expense
1811.00
745.00
645.00
Not given
EBIT
10402.00
8640.00
9592.00
Not given
Interest
0.00
0.00
0.00
Not given
EBT
10402.00
8640.00
9592.00
Not given
Tax
2600.50
2160.00
2398.00
Not given
Net Profit
7801.50
6480.00
7194.00
Not given
Net PPE
17032.00
14522.00
13064.00
12813.00
Net PPE: Net Property Plant and equipment (Balance sheet item)
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