Fixed Assets Depreciation & Business Operations

Fixed Assets Depreciation

Depreciation method of the downward-digit numbers, and that by paying more initially decreases the benefit in the long run, which is favorable for the company in the Income Tax. In addition, the company also benefits when it comes to getting a loan.

Ratios

  • Sales / Plant & Machinery
  • Sales / Assets
  • Sales / Cost of sales
  • Sales / Staff costs
  • Staff costs / Sales

Market Interest Rates

Interest rate financial market l/p = 4.01%; c/p = 1.51%. Cumulative inflation rate = 1.50%. Corporate tax = 30%.

Evolution Range of Labor Income

Developing positively over five years. In 2009, the monthly salary per member was €940.8, and in 2013, it was €3032.4.

Constitution Procedures

Entry in the RM – bank loan certificates – statutes – request CIF – Cadastre – and tax write constitution – company registration work – model of economic activity – open license – high wastewater and light – and open communication workplace – guestbook acquisition – lease of premises – industrial property registration – quality certificate application – NACE code and IAE.

Valuation of Investments

NPV and IRR, but the two investments should be homogeneous in terms of recovery and the initial outlay. In the case of the existing reinvestment rate of different cash flows, it is solved by the modified TIR.

Optimization

Optimization is using the investment program to select the most profitable investment projects to maximize profitability. Not subject to stock valuation, investments in other companies, only production-related assets (productive assets of the company). The Solver method is used.

Sales Estimates – Required

  • Required Sales Estimates – 2009: 12 auctions (one month) of 10 objects of €30,000 each, with our commission being 15% on the price of the product. Sales 2009 = ((10 * €30,000) * 0.15) * 12 months. The target of these sales is the survival of the company for placement on the market for a 5-year projection of the plan.
  • Estimated Sales – Required 2013: Sales increased given that market growth is 8% and our market share rate of 1.5% and the market volume of €100,163,000.
  • Sales Required: To balance sales with the estimated required, we had to reduce the salary of members, also modifying the range of earned income. The target of these sales is profit or remuneration of members.

Decisions as Charged

  • Ana Maria Bathrooms Alava: HR – raising staff, training, and development strategies.
  • Javier Ortega Caserza: Investment and financial – analysis, calculations, monitoring, implementation, and project appraisal.
  • Simon Itziar Sword: Commercial – PR, graphic, printing, advertising, and marketing.
  • I: Administration and control – production of services, logistic support, and search documentation.
  • Carol Morcos Basilio: DG – organization, supervision, and coordination.
  • Sergio Vargas Molina: Production – meetings, accounting, and organization methods.

Debt Cancellation

Financial depreciation sinking fund system (American system), whereby in the first years, more interest is paid, and in more recent years, the amount of debt is amortized.

Simulation Ratios and What

Sales / AF, to see what portion of sales to fixed assets is financing the L/P.
Sales / Cost of sales, is the trade margin.

Our Services

Sale through online auction of works of art, transportation service, and storage of these objects in databases.