Module I· Interview Essentials AccountingIntermediate

Question

Capex of 100 paid in cash. What happens across the three statements?

Answer

Immediate effect: cash down 100, PP&E up 100, no P&L impact, investing cash flow down 100.

Deep diveShow more details

Capex affects earnings later through depreciation.

← PreviousDepreciation increases by 10. What happens across the three statements? Tax rate 25%.Next →Inventory write-down of 10. Three-statement impact? Tax rate 25%.

Back to Accounting