The forecasted capital expenditure based on the information below is 4,900. Thus the correct answer is B.
Capital is referred to as the lifeblood of any business. It is the collection of assets of the business that has their financial value to make the production of goods and services.
For calculating the forecasted capital-
Net PP&E beginning of period = 15,000
Net PP&E end of period = 17,500
Depreciation expenses = 2,400
Forecasted capital expenditure = Net PP&E end of period + Depreciation expenses - Net PP&E beginning of the period
= 17500 + 2400 - 15,000
= 4,900
Therefore, option B 4,900 is appropriate to answer.
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The complete question is-
What’s the forecasted capital expenditure based on the information below?
Net PP&E beginning of period: 15,000
Net PP&E end of period: 17,500
Depreciation expenses: 2,400
Review Later
2,500
4,900
100
-100
