There is a (loss) in “additions to property, plant, equipment” in the cash flow statement, a positive number for the net income line item, and positive depreciation/amoritization expenses line item in the cash flow statement. The balance sheet shows a lower in 23 amount for “property, plant, equipment, net” than the one in 22.
How can I calculate how much the firm paid for PP&E purchases in 23 using the cash flow and balance sheet information? Or is the cash flow statement not useful for this? I just need some direction, and I can plug the numbers in to get the answer. Thanks.
Open Question
The (loss) you refer to in the Cash Flow statement means negative Cash flow, or gross additions to PP&E . If the Balance Sheet shows a net decrease for the year, that means they disposed of more assets than they acquired that year. PP&E, Net means total assets at cost minus accumulated depreciation. So start with the Balance in Net PP&E at the beginning of the year (prior year’s ending balance), add gross additions from the Cash Flow statement, subtract the year’s depreciation expense (exclude amortization, if you can separate it out), to give you an Ending Balance if no assets had been disposed of. Subtract the actual Ending Balance to give you net book value of dispositons.