NO.PZ2023040301000194
问题如下：
An analyst gathers the following information about a company (in $
millions):
Forecast
assumptions for Year 2:
•
net sales growth: 10%
•
(depreciation expense / net
PP&E beginning of year) ratio to remain constant
•
maintenance capital
expenditures equal depreciation expense
•
growth capital expenditure: 5%
of net sales
The forecast total
capital expenditure for Year 2 is closest to:
选项：
A.$55 million
$86 million
$95 million
解释：
C is Correct
because capital expenditures can be broken down into maintenance capital
expenditures necessary to sustain the current business and growth capital
expenditures needed to expand the business. Maintenance capital expenditure
forecasts are often based on historical depreciation and amortization expenses,
usually with a small adjustment upward to account for inflation in capital
goods. Growth capital expenditure forecasts are more discretionary and are tied
to management's expansion plans and revenue growth. Depreciation and
amortization forecasts are based on net PP&E and intangibles on the balance
sheet (which increase due to capital expenditures) and their useful lives as
assumed by management’s accounting policies, which can be approximated by the
ratio of gross fixed assets to depreciation and amortization expenses.
Information may also be found in the notes to the financial statements.
Year 1:
(Depreciation
expense/net PP&E beginning of year) = 36/480 = 0.075
Year 2:
net sales = 1,000×(1+10%) =
1,100
growth capital
expenditure = 5%×1,100 = 55
maintenance
capital expenditure = depreciation expense = 530×0.075= 39.75
total capital
expenditure = growth capital expenditure + maintenance capital expenditure = 55
+ 39.75 = 94.75 ≈ 95.
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