Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Here are figures from Woolworths' 2011 annual report on the movements in net property, plant and equipment (PPE) during the year. Except for additions
Here are figures from Woolworths' 2011 annual report on the movements in net property, plant and equipment (PPE) during the year. Except for additions and disposals of PPE, all the movements in net PPE are given here. Numbers are in millions of Australian dollars. This table is also attached as a PDF Net PPE beginning balance Transfer from PPE to assets held for sale Depreciation expense for 2011 Decline in carrying amount of foreign PPE items due to foreign exchange movements Net PPE ending balance 7,639.1 92.7 853 37.6 8,620.3 Apart from this, the company collected A$394.4 million in cash and cash equivalents from sale of PPE in 2011. Of this, A$72 million consisted of collections from PPE disposals in previous years. The company reported a loss on PPE disposals of A$15.4 million for 2011. The company reported cash paid for purchase of PPE of A$2,138.5 million in 2011 in the cash flow statement. Required: 1 What was the effect of PPE disposals in 2011 on the net PPE? Give the amount in A$ millions and the direction of the effect (increase or decrease). 2 What was the effect of PPE additions in 2011 on the net PPE? Give the amount and the direction of the effect (increase or decrease).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started