Title: Discuss the importance of depreciation expenses. The concept and practice of depreciation plays an integral part in a company’s cash flow situation and funding. The two main reasons this occurs are that firstly depreciation is a for of self finance, and secondly because a company does not have to pay taxes on depreciation, hence excluding taxation from a cash amount which enlarges the cash flow of a company. As a term, depreciation is …showed first 75 words of 761 total…

…showed last 75 words of 761 total…Earnings £180 £380 £300 + Depreciation £200 £0 £0 Cash Flow £380 £380 £300 Guide to working capital management, Keith V. Smith, McGraw-Hill Book Company, 1977, p.7, Exhibit 1-4 Bibliography Guide to working capital management, Keith V. Smith, McGraw-Hill Book Company, 1977 Internet Search On Depreciation - http://encarta.msn.com/find/Concise.asp?ti=01680000 - http://accounting.software-directory.com/cdprod1/swh... - http://www.iasc.org.uk/frame/cen2_14.htm - http://www.geocities.com/Tokyo/3086/java/project.html - http://www.gaap.com/assets.htm