Does total Capex equal payments for PPE minus sales of PPE?
Thank you.
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Question about total Capex
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Question about total Capex
by hehexiong » Wed Nov 24, 2010 2:48 pm
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Re: Question about total Capex
by wsthost » Wed Nov 24, 2010 3:16 pm
Yes, correct. CapEx is usually purchases of PPE.
Normally sales of PPE assets would be split in another line item of the CF statement, called Disposal (or Sale) or assets.
The actual accounting can get trickier since when you sell PPE, the GROSS amount carried on the books and the accumulated depreciation aresubtracted from PPE on the BS.
Normally sales of PPE assets would be split in another line item of the CF statement, called Disposal (or Sale) or assets.
The actual accounting can get trickier since when you sell PPE, the GROSS amount carried on the books and the accumulated depreciation aresubtracted from PPE on the BS.
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