Financial Function Formulas

Tim25 · Mar 18th, 2002, 10:42 PM

For an accounting class, I need to calculate several depreciation schedules. Using the financial function feature I can make them all work except the DDB oprion. I haven't been able to have the computer's calculated total depreciation equal the cost of the asset, nor does it zero out in the final year. I enter the data correctly because the first year's depreciation is correct, It equals twice the straight line depreciation. What am I doing wrong?

Dave Patton · Mar 18th, 2002, 11:28 PM

An example of your information,
the formula that you used,
and expected results would be useful.

yr 1 =DDB(2400,300,10,1,2)
yr 2 =DDB(2400,300,10,2,2)

consider using a column and adj row() as necessary =DDB(2400,300,10,ROW(),2)
Copy down to show 10 cells

Tim25 · Mar 19th, 2002, 08:15 AM

Thanks. Formula for year one was DDB(50000,0,15,1,2). I made the first three numbers absolutes with the $ sign. I then copied the formula to the cells for years 2-15. Year 2 formula became (50000,0,15,2,2). However, I'm now thinking that the 15 can't be absolute becasue unlike other methods, the depreciation schedule "starts over" in each year. So would I be unable to simply copy the cell formula to other cells in this case?

Dave Patton · Mar 19th, 2002, 08:48 AM

You may learn more by trying the formula and
seeing if it increments.

Look at the formulas after you copy them down.

If you want, manually edit the formulas.

You could also look at the sample formula that I provided. Why do you think I used row() to derive the number?

Tim Francis-Wright · Mar 19th, 2002, 11:39 AM

Quote:

On 2002-03-18 21:42, Tim25 wrote:
For an accounting class, I need to calculate several depreciation schedules. Using the financial function feature I can make them all work except the DDB oprion. I haven't been able to have the computer's calculated total depreciation equal the cost of the asset, nor does it zero out in the final year. I enter the data correctly because the first year's depreciation is correct, It equals twice the straight line depreciation. What am I doing wrong?

I think that DDB is useless. It doesn't give
you the ability to switch to straight-line
depreciation (like real life depreciation
schedules do). Use the VDB function instead.
(And even that function won't help you for
short tax years!)

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Mar 18th, 2002, 10:42 PM	#1
Tim25 New Member Join Date: Mar 2002 Posts: 2	For an accounting class, I need to calculate several depreciation schedules. Using the financial function feature I can make them all work except the DDB oprion. I haven't been able to have the computer's calculated total depreciation equal the cost of the asset, nor does it zero out in the final year. I enter the data correctly because the first year's depreciation is correct, It equals twice the straight line depreciation. What am I doing wrong?

Mar 18th, 2002, 11:28 PM	#2
Dave Patton Board Regular Join Date: Feb 2002 Location: Calgary, Alberta Canada Posts: 2,065	An example of your information, the formula that you used, and expected results would be useful. yr 1 =DDB(2400,300,10,1,2) yr 2 =DDB(2400,300,10,2,2) consider using a column and adj row() as necessary =DDB(2400,300,10,ROW(),2) Copy down to show 10 cells

Mar 19th, 2002, 08:15 AM	#3
Tim25 New Member Join Date: Mar 2002 Posts: 2	Thanks. Formula for year one was DDB(50000,0,15,1,2). I made the first three numbers absolutes with the $ sign. I then copied the formula to the cells for years 2-15. Year 2 formula became (50000,0,15,2,2). However, I'm now thinking that the 15 can't be absolute becasue unlike other methods, the depreciation schedule "starts over" in each year. So would I be unable to simply copy the cell formula to other cells in this case?

Mar 19th, 2002, 08:48 AM	#4
Dave Patton Board Regular Join Date: Feb 2002 Location: Calgary, Alberta Canada Posts: 2,065	You may learn more by trying the formula and seeing if it increments. Look at the formulas after you copy them down. If you want, manually edit the formulas. You could also look at the sample formula that I provided. Why do you think I used row() to derive the number?