Question: You are preparing a general overhead budget to be used to project your company's annual cash flow. How would you handle the depreciation of the
You are preparing a general overhead budget to be used to project your company's annual cash flow. How would you handle the depreciation of the owner's truck? Depreciation doesn't generate cash flow therefore it is not included in a general overhead budget. Amortize the depreciation over each month of the year. Include the depreciation on the income statement. Include the depreciation in my estimated tax burden and financial statements.
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