Capital expenditure is cash outflow that is not of recurring nature and is a one-off item while calculating the free cash flows. The concept is used in capital budgeting and it very important as it can affect the cash balance at the end of a period while preparing cash flow projections.
Capital expenditure is also included under the head of investing activities in the cash flow statement.
The net capital expenditure is calculated as follows:
Closing CAPEX = Opening CAPEX + Additions – Disposals – Depreciation Expense
The capital expenditure is also described as the change in the net fixed assets during the year.
Elmdale Enterprises is deciding whether to expand its production facilities. Although
Victoria Enterprises expects earnings before interest and taxes (EBIT) next
Cellular Access, Inc., is a cellular telephone service provider that
Sora Industries has 60 million outstanding shares, $120 million in
Sailboats Etc. is a retail company specializing in sailboats and other
The WorldCom fraud was the largest in U.S. history
Refer to the RadioShack Corporation Consolidated Financial Statements in Appendix B at
1. Which of the following statements is correct? I
See the cash flow statement below for H. J. Heinz
Club Loop Corporation (CL) is a large owner, operator
