CFA Mock FCINV

[Kyle042678]

Thought I had FCINV figured out. Why in National Plastics (CFA mock) do they calculate FCINV as the change in long-term assets, net, and then add depreciation to this figure?

 

[Would You Look]

FCInv = End Gross PP&E - Beg Gross PP&E
Alternatively,
FCInv = End Net PP&E + Dep Exp - Beg PP&E
Depreciation Expense is simply the change in accumulated depreciation, so, to get to original cost (Gross) PP&E, you can take End Net PP&E + Accumulated depreciation

 

[Kyle042678]

Thanks. And if there are asset sales do you add back the proceeds or the gain?

 

[jitendra179]

you deduct procceds from sale as those are cash inflows

 

[SMHKR]

I got this question wrong as well. On the exam, you need to see whether the PPE is in gross or net terms. Make sure to add back depreciation if net PPE is given.

 

[Poscfa]

Which is the lastest cfa mock 2014? as there are two and one of them I think was released in March…