How to calculate depreciation?

• Purchase of retail kiosk (mobile retail food outlet) $500,000
• Specialized kitchen equipment $50,000
• Installation of the kitchen equipment $10,000
• Furniture and fittings $50,000
• Cost of the stand (kiosk), together with the cost of the equipment, furniture and fittings and the installation, is depreciated over five years according to the straight-line method. The stand (together with the furniture and kitchen equipment) is expected to be worth $300,000 after five years of service.

• Note: The definition of an asset's cost is all costs that are necessary to get an asset in place and ready for use.

AutoSave Capital Budgeting Excel - Excel O Search (Alt+Q) File Home Insert Page Layout Formulas Data Review View Help C23 X 62000 B G H 0.00 1.00 5.00 109500.00 547500.00 100000.00 155000.00 D 2.00 7.50 131400.00 985500.00 100000.00 155000.00 E 3.00 11.25 157680.00 1773900.00 100000.00 155000.00 F 4.00 16.88 189216.00 3193020.00 100000.00 155000.00 5.00 25.31 227059.20 5747436.00 100000.00 155000.00 . 1 Years 2 Price per unit 3 No of units 4 Total Sale of Burgers 5 Drinks 6 Other food sales 7 8 Total Sales (Gross sales) 9 10 Cost of Raw materials: 11 Burgers 12 Total Raw material for the burgers 13 Drinks 14 Other food supplies 15 Nonfood supplies 802500.00 1240500.00 2028900.00 3448020.00 6002436.00 2.00 219000.00 38400.00 58900.00 50200.00 2.20 289080.00 38400.00 58900.00 50200.00 2.42 381585.60 38400.00 58900.00 50200.00 2.66 503692.99 38400.00 58900.00 50200.00 2.93 664874.75 38400.00 58900.00 50200.00 16 17 Total Cost of goods sold 366500.00 436580.00 529085.60 651192.99 812374.75 18 436000.00 803920.00 1499814.40 2796827.01 5190061.25 19 Gross Profit 20 21 Kitchen and service staff 22 License and rent costs 23 Depreciation 24 Earnings before tax 200000.00 150000.00 62000.00 200000.00 150000.00 200000.00 150000.00 200000.00 150000.00 200000.00 150000.00 25 26 Tax @ 35% 27 28 Net Income 29 30 Plus: Depreciation 31 Purchase of retail kiosk 32 33 Free Cash Flow 34