Depreciation and Amortization — These expenses appear in the operating expense section of the income statement to allocate the cost of a capital asset during the period and record its use. Once the asset is owned, it starts depreciating. Unthreaded, ascending Unthreaded, descending. General Forum Members Points: However, I found that when copied and pasted into Excel, then formatted as money, the balance showed 0. As you can see, the taxes, depreciation and interest are added back into the net income for the year showing the amount of earnings Jake was able to generate to cover his interest and tax payments at the end of the year. Often the equation is calculated inversely by starting with net income and adding back the ITDA.
I was trying to figure out that last line.
Thus, the formula can be altered to exclude only taxes and depreciation. You should also still read the entire thread to understand why the changes were needed. Thank you so much Jeff. You can download attachments. Intangible assets that you cannot touch, i.