Calculating Capital Expenditure and Operational Expenditure a. Ruta owns a furniture company. In 2018, she decides to spend money on new equipment and an expanded facility. For those activities, the following information provided: Depreciation - $15,000 PP&E at the end of 2018 = $50,000 PP&E at the beginning of 2018 = $35,000 Base on the information above, calculate the capital expenditure for Rta's furniture company. b. Jonas owns a boutique and have purchased new equipment and computers in 2018. The following information was provided to Jonas by the accountant: Depreciation in 2018 = $20,000 PP&E for the current period=$15,000 PP&E for the prior period = $10,000 Using the following formula below, calculate Jonas's capital expenditures, . capital expenditures = PP&E (current period) - PP&E (prior period) + depreciation (current period) Give reasons for the answer derived from your calculations. c. Read the following information provided in the diagram below and calculate the capital expenditures in 2018. Give reasons for the answer that you have derived from your calculations. d. Please explain where on the balance sheet would you find capital expenditure? FINANCIAL STATEMENTS 2017 2018 2019 2020 2021 158,311 58,575 99,736 165,435 61.211 104.224 172,052 61.939 110,113 178,074 64,107 113,967 183,416 64,196 119,220 Income statement Revenue Cost of Goods Sold (COGS) Gross Profit Expenses Salaries and Benefits Rent and Overhead Depreciation & Amortization Interest Total Expenses Earnings Before Tax 26,913 10.000 15.00 1,500 53,421 46,314 28.124 10.000 15.005 1,500 54,629 49,595 29,249 10,000 15,003 500 54,752 55,361 30.273 10.000 15.002 500 55,775 58,192 31,181 10,000 15,001 500 56,682 62,538 Balance Sheet Assets Cash Accounts Receivable Inventory Property & Equipment Total Assets 272,530 7.807 11.715 37,513 329,565 307.632 8,158 12.242 37.508 365,541 327,097 8,485 12,388 37,505 385,474 368.487 8,782 12821 37503 427,593 413.243 9,045 12,839 37,502 472,629 CapEx Formula 15,000 15,000 15,000 15,000 Figure 1. Financial Statement Forecast, Source: Indeed, 2021