Gross PP&E vs. Net PP&E

[FrankCFA]

What’s the difference between Gross PP&E vs. Net PP&E? Only Depreciation?
Thanks.

 

[dani789]

yes

 

[mfreema2]

OK, so help me out, please. To calculate FCInv, I have the following methods. Let me know if I’ve got it right, please:
1. FCI= Capital Expenditures - Proceeds from sales (off the statement of cash flows)
2. FCI = Ending Gross PPE - Beginning Gross PPE (this is just your Capex figure)
3. Ending Net PPE - Beginning Net PPE + Depreciation
So what do we do if we’re given Beginning and Ending PPE, Depreciation, and proceeds from sales, along with a tax rate? I’m guessing it’s:
Ending Net PPE - Beginning Net PPE + Depreciation - Proceeds from sales
Please let me know, I tend to be getting this wrong about half the time in practice sets. Thanks.

 

[blademaster3090]

you don’t subtract the proceeds from sales, you subtract the value of PP&E that was sold. everything else is right. you don’t have to worry about a tax rate while calculating gross PP&E

 

[mfreema2]

Thanks, Blademaster3090

 

[cfa2014]

Remember to watch out for Asset Impairment..too