DIABB Maths Rules

*Yearly Depreciation = Cost – Salvage Value

Estimated Life

*Statement of Investment Cost:

Cost of Machine =

Add: Working Capital =

Total = ----------------

Statement Of Cash inflow

Particulars	Year 1	Year 2	Year 3	Year 4	Year 5
Profit Before Depreciation & Tax
Less: Depreciation
Earnings Before Tax
Less: Tax %
Earnings After Tax
Add: Depreciation
Cash Before Terminal Cash inflow
Add: Salvage Value
Add: Working Capital
Net Cash Inflow

Calculation Of Payback Period:

Year	Cash Inflow	Cumulative Cash Inflow
1
2
3
4
5

1. Payback Period: A+ NCO - C Here: A= The year in which cumulative cash Inflow

D Comes nearer to NCO

NCO= Net Cash Outlay

C= Cumulative Cash Inflow of the Year A.

D= Cash Inflow of the Year Following The year A.

2.ARR (Average rate of Return)= Average EAT x 100

Average Investment

Averages EAT= Total EAT

Years

Average Investment= Net Working Capital + Initial Investment+ Salvage Value

3.ROI (Return On Investment)= Average EAT x100

Total Investment

Table For Calculation Of NPV, PI, NPI, IRR

Year	Net Cash Inflow	DF %(A)	PV	DF%(B)	PV
1
2
3
4
5

Total PV of Cash inflow=

Less: Investment =

NPV(Net Present Value)=

4.NPV= Total PV Of Cash Inflow – NCO 10. NCB= Total CFAT/NO: Of Years

5.PI= TPV x 100 6. NPI= PI - 100

PV of NCO

7.PV OF PBP= A+ PV of NCO – C 8. PBR= 1 x100

D PBP

9.IRR:

IRR=A+ C x (B-A) Here: A=Lower Discounting Rate=

C-D B=Higher Discounting Rate=

C= NPV of Lower Discount Factor=

D= NPV of Higher Discount Factor=

For Positive NPV= NPV Negative Hole DF% Komate Hobe Minimum 10%

Since The Project PI<1 , Hence it is not wise to select the project.

PI>1 = Accept

NPV (+) = Acceptable

TPV>NCO Acceptable

Company Name

Statement Of Cost/ Cost Of Goods Manufactured/Cost of Goods Sold

For The Year Ended 30 June,2013

Particulars	Tk	Tk	Tk
Raw Materials: Opening Raw Materials Add: Purchase Raw Materials Add: Carriage Inwards/Freight In Total Cost Of Purchase Less: Purchase Return And Allowance Less: Purchase Discount Net Cash Of Purchase Raw Materials Available For Use Less: Ending Raw Materials Raw Materials Consumed Add: Direct Labor/ Wages Add: Other Direct Expense(Factory wages, Production Wages, Manufacturing Wages) Prime Cost Add: Factory Overhead: Indirect ‡jLv me ai‡Yi Expense Factory/ Work Gi mv‡_ †jLv Expenses Depreciation For Plant, Machine, Tools, Equipment Coal, Gas, Water Drawing Office Salary Works Welfare Expense Insurance/Premium For Factory Total Manufacturing / Factory Overhead Less: Sale Of Scrap Total Manufacturing Cost/ Factory Cost/ Works Cost Add: Beginning Work in Process Total Cost Of Input Less: Ending Work In Process Cost Of Goods Manufacture / Production Cost Add: Beginning Finished Goods Inventory Cost Of Goods Available For Sale Less: Ending Finished Goods Inventory Cost Of Goods Sold Add: Administrative Expense(Office Salary, Rent Exp, Insurance Exp, Utilities Exp, Supplies Exp, Depreciation Exp-Office Furniture) Add: Selling Expense: ( Advertising Exp, Carriage Out, Freight Out, Delivery Exp, Salesman Salary, Depreciation On Store Equipment) Total cost Add: Profit Sales

Name Of The Company

Statement Of the Cash Flow (Indirect Method)

For The Year Ended 2013

Particulars	Tk	Tk
Net Income:		***
(1)Cash Follow From Operating Activities
Add: Non Cash Exp.	***
Depreciation Exp. ( Building, Equipment)	***
Amortization Exp.(Patent)	***
Amortization Of Discount On Bonds Payable	***
Add: Decrease In Accounts Receivable	***
Decrease In Merchandize Inventory	***
Decrease In Prepaid Expense	***
Increase In Accounts Payable	***
Increase In Accrued Expense Payable	***
Loss On Sale Of Any Fixed Assets (Investment, Equipment)	***
Less: Increase In Accounts Receivable	(***)
Increase In Merchandise Inventory	(***)
Increase In Prepaid Expense	(***)
Decrease In Account Payable	(***)
Decrease In Accrued Expense Payable	(***)
Gain Of Sale of any fixed Assets (Investment, Equipment)	(***)
Income Tax Paid	(***)
Net Cash Provided By Operating Activities:		***
(2)Cash Follow From Investing Activities:
Add: Cash Received From Sale Of Trading Securities	***
Cash Received From Sale Of Any Fixed Assets ( Equipment)	***
Less: Cash Purchase Of Any Fixed Assets	(***)
Net Cash Provided By Investing Activities:		***
(3)Cash Follow From Financing Activities:
Add: Cash Received From Issuance Of Bonds Payable	***
Cash Received From Issuance Of Short Term Notes Payable	***
Cash Received From Issuance Of Common Stock	***
Cash Received From Issuance Of Share/ Stock	***
Less: Payment Of Cash Dividend	(***)
Cash Paid For Treasurer Stock	(***)
Cash Paid For Redemption Of Bonds	(***)
Cash Paid For Retirement Of Bonds	(***)
Net Cash Provided By Financing Activities:		***
Net Changes In Cash During The Year		***
Add: Beginning Balance Of Cash		***
Ending Balance Of Cash:		***

What precautions should be taken by a banker before advancing

What precautions should be taken by a banker before advancing What precautions should be taken by a banker before advancing the loan or Investment? No doubt the advancing of loan is also risk as well. If the loan is for a longer period then risk will be also greater. So before advancing the loan a banker should keep in view the following precautions : Business Volume: Character : Character of the borrower depends upon honestly, family background, nature of employment, habits and the record of the past. So before advancing loan these things must be considered. 2. Ability To Repay : Before advancing loan a banker must be satisfied with the sources of the repayment of the funds. 3. Check The Assets : The banker should also check the property capital and borrower. This property can kept as a security of loan. In other words if the businessman financial condition is sound then it can be lended otherwise not. 4. Purpose Of Financing :- Funds should be provid...

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