Option B
The depreciation is calculated as from net PPE.
The PP&E forecast formula is
PP&E (End of Period ) = PP&E (Beginning of period) + Capital Expenditure - Depreciation _ Asset Sales
The PP& E used in this formula are the net values.
The depreciation is also calculated as a percentage of capital expenditures which add to the net value of the PP&E.
13. When using PP&E as the forecast driver for depreciation, which of the following is most...
Q.12 11 Tulevasted. poutny assets and operating d) Inventory and accounts payable should be forecasted based on total assets, as these tend to scale together 12. Which of the following are true concerning forecasting interest income? I. It is a nonoperating measure. II. Its typical forecast driver is revenue. III. It is typically the same from year to year for firms that generate high cash flow. IV. The typical forecast ratio is interest income in the current period divided by...
Please answer the following. Thanks 10. Describe the relation between Gross PP&E, Net PP&E, and depreciation. 11. How are stocks categorized under financing activities different from stocks categorized under investment activities on the Statement of Cash Flows? 12. Give an example of how are earnings and cash flows can be different? Make sure to apply financial statements terminology when giving an answer. 10. Describe the relation between Gross PP&E, Net PP&E, and depreciation. 11. How are stocks categorized under financing...
Are these the correct answers? QUESTION 13 IFRS allows for revaluation of PP&E with the differences impacting OCI, but not net income. True False QUESTION 14 Which of the following should be reported as a prior period adjustment? Mistakes in the application of accounting principles, but not changes in the lives of depreciable assets. Both mistakes in the application of accounting principles and changes in the estimated lives of depreciable assets. Changes in the lives of depreciable assets, but not...
Which of the following should you consider most when preparing a financial forecast? Minimum cash requirements Historical cash flows Industry averages Capital structure
fox llc has PP and E (net) of 170 on 12/31/15 and 110 on 12/31/14. Depreciation for 2015 is 120. Acquisitions net of dispositions for 2015 is A. 180 B. 190 C. 200 D. 210
The general neural network methodology is often described as a "black box" methodology. In a practical sense, which of the following is the most negative effect of this? A. The predictions from neural nets are often accurate, often more accurate than from other methods, but it is practically impossible to untangle the effects of the individual explanatory variables on the dependent variable. B. The detailed steps of the algorithm are totally random, even though they often produce accurate predictions. C....
Which of the following values of the exponential smoothing constant would emphasize the most recent forecast? A. 1 B. 0 C. 2.0 D. cannot be determined from the information provided
[13) Pingo plc has the following estimates of the net present value of a project using different interest rates: Discount rates 10% NPV 366 230 103 -76 0 0 15% Which pair of interest rates will provide the most accurate estimate if interpolation is used to estimate the project's internal rate of return? a) b) c) d) e) 8% and 10% 8% and 12% 10% and 12% 8% and 15% 12% and 15%
which of the following would likely be the most appropriate cost of driver of electric power used by machines? a) Number of production runs b) Machine size c) Purchase cost of machines d) Number of machine hours
Which of the following statements is CORRECT? a. The first, and perhaps the most critical, step in forecasting financial requirements is to forecast future sales. b. The capital intensity ratio gives us an idea of the physical condition of the firm’s fixed assets. c. Forecasted financial statements, as discussed in the text, are used primarily as a part of the managerial compensation program, where management’s historical performance is evaluated. d. Perhaps the most important step when developing forecasted financial statements...