Question
A company reports the following balances as of the beginning and end of the year: PP&E (gross) Accumulated Depreciation Beginning of year $60,000 $20,000 End
A company reports the following balances as of the beginning and end of the year:
| PP&E (gross) | Accumulated Depreciation | |
| Beginning of year | $60,000 | $20,000 |
| End of year | $80,000 | $25,000 |
There were no dispositions during the year. What is your best estimate of the amounts and locations on the statement of cash flows for depreciation and capital expenditures?
| a. | $5,000 addition for depreciation expense in the operating section; $20,000 subtraction for capital expenditures in the investing section | |
| b. | $5,000 addition for depreciation expense in the operating section; $20,000 addition for capital expenditures in the investing section | |
| c. | $5,000 subtraction for depreciation expense in the operating section; $20,000 subtraction for capital expenditures in the investing section | |
| d. | $5,000 subtraction for depreciation expense in the operating section; $20,000 addition for capital expenditures in the investing section |
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Finance Applications And Theory
Authors: Marcia Cornett, Troy Adair, John Nofsinger
2nd Edition
0073530670, 9780073530673
