Yes thank you….You’re correct we excluded the depreciation.

So now can someone recall why

depreciation is not included in the cash disbursement?

So thank you….no? Naminaw jud sila. Depreciation is a non-cash expense meaning that the
company is not actually spending cash…maong di jd na sya dapat i-include.

So this is because we excluded the depreciation. Again, I have highlighted earlier na ang
depreciation kay excluded sya from cash disbursement, it’s because depreciation does not result
in cash outlay. 

So 128k minus 5k of depreciation and that’s how 123k is obtained.

Next is the  R&d expenses which is 28k, now let’s refer to schedule 9. So again, there’s a
depreciation, so we must deduct this again.

As for the income taxes, as you can see the 600k amount is only reflected in the last quarter.
Going back to the assumptions, assumption g states that corporate income taxes are
approximately 600k dollars and will be paid at the end of 4th quarter.