Question

If Beta Limited has opening PP&E balance of 150, a depreciation expense of 75, and a closing PP&E balance of 170, what is Beta's net capital expenditure (or CAPEX)?

Answer 1

Explanation:

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Answer 2

Answer:

If Beta Limited has opening PP&E balance of 150, a depreciation expense of 75, and a closing PP&E balance of 170, Beta's net capital expenditure (or CAPEX) can be found by using the following formula:

CAPEX = PP&E (current) – PP&E (prior) + Depreciation

            = 170 – 150 + 75

            = 170 + 75 – 150

            = 245 – 150

            = 95.

Therefore, the CAPEX of Beta is 95.