Purchase of PPE
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Can anyone offer me some help please?
When you are doing a cashflow and there is a purchase of property plant and equipment in the additional information is there any easy way to remember how to calculate the figure for the cashflow ie balance b/d + depreciation + disposals and new figure from balance sheet what is the mising figure?
When you are doing a cashflow and there is a purchase of property plant and equipment in the additional information is there any easy way to remember how to calculate the figure for the cashflow ie balance b/d + depreciation + disposals and new figure from balance sheet what is the mising figure?
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Comments
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Re:Purchase of PPE
I find it easier to set it out as follows:
Non-current assests b/fwd
Add: Purchases of non-current assets (At cost)
Less: Disposals of non-current assets (At NBV)
Less: Depreciation
Equals Non-current assets c/fwd
You usually get all of the figures except one which is the balancing figure!
Purchases then get transferred to cashflow stmt as they are and the disposals NBV is adjusted for profit/loss on sale before transferring.
Hope that helps!0 -
Re:Purchase of PPE
thats great thanks0