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  • Accept Fine Printing Proposal Differential Cash Flow Approach If P&D Is Closed

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    Navya Agrawal
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    This document outlines the cash flows for two alternatives: keeping an in-house Printing and Design (P&D) department versus outsourcing P&D to an external vendor. For each alternative, it lists 14 line items that represent cash inflows and outflows over the evaluation period, such as salaries, inventory sales, cost savings, and contract payments. It provides the description and amount for each line item for both the status quo and outsourcing options to compare the total cash flows under the two alternatives.

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    Sparkpublishing_Class File.xlsx

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    This document outlines the cash flows for two alternatives: keeping an in-house Printing and Design (P&D) department versus outsourcing P&D to an external vendor. For each alternative, it lists 14 line items that represent cash inflows and outflows over the evaluation period, such as salaries, inventory sales, cost savings, and contract payments. It provides the description and amount for each line item for both the status quo and outsourcing options to compare the total cash flows under the two alternatives.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    9 views4 pages

    Accept Fine Printing Proposal Differential Cash Flow Approach If P&D Is Closed

    Uploaded by

    Navya Agrawal
    This document outlines the cash flows for two alternatives: keeping an in-house Printing and Design (P&D) department versus outsourcing P&D to an external vendor. For each alternative, it lists 14 line items that represent cash inflows and outflows over the evaluation period, such as salaries, inventory sales, cost savings, and contract payments. It provides the description and amount for each line item for both the status quo and outsourcing options to compare the total cash flows under the two alternatives.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    Assumption

    Accept Fine Printing proposal


    Differential cash flow approach if P&D is closed
    Evaluation period
    Particulars
    1 Pension to two employees
    2 Salary to two specialized staff
    3 Savings in managers salary
    4 Staff retrenchment allowance
    5 Sale of inventory
    6 Material cost saved
    7 Depreciation
    8 Sale of machinery
    9 Opportunity revenue from sale of vehicle
    10 Allocated general overheads
    11 Rent revenue
    12 Savings in warehouse rent
    13 Savings in other operating expenses
    14 Contract payment
    Total cash outflow (inflow)

    Total cost approach under both alternatives


    Evaluation period
    P&D department
    Particulars
    1 Salary and pension cost
    2 Salary to two specialized staff
    3 Managers salary
    4 Salary and retrenchment allowance
    5 Sale of inventory
    6 Material cost saved
    7 Depreciation
    8 Sale of machinery
    9 Opportunity revenue from sale of vehicle
    10 Allocated general overheads
    11 Rent revenue
    12 Warehouse rent - rental
    Warehouse rent - savings
    13 Other operating expenses
    14 Contract payment
    Total cash outflow (inflow)
    Amount

    Alternative 1: Cash flows in Status quo option


    Amount

    -
    Notes

    Alternative 2: Cash flows in outsourcing option


    Amount

    -
    Notes

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