capex

[sklyte]

if balance sheet increase net PPE by 1,000 but there are assets sold during the period, the capex - depreciation is 1,000 or you have to add back the sale?

 

[kwizz]

only go by Change in net ppe + depreciation because the net ppe should reflect the sale. That’s my gut instinct but please, if someone knows better I’d love to get corrected.

 

[kwalew]

Ending Net = Beginning Net - Depreciation + Purchases - BOOK value of assets sold
CapEx will be Purchases - sale proceeds of any assets sold. So if they sell assets (and have a gain or loss) you need to make sure to either look for info regarding the gain/loss in the vignette or in CFI

 

[kwizz]

OK, so to be clear. Let’s say net ppe 2010 is 1000 and net ppe 2011 is 1200. Depreciation is 300 and assets of BV 100 is sold for 150. What is cap ex?
1200-1000+300-50(gain) = 450?

 

[sklyte]

should be 1200-1000+300+100= capex is 600 since you sold your bv of 100