Beta Limited has opening PP&E balance of 150, a depreciation expense of 75, and a closing PP&E balance of 170, what is B

Question

storchak

1 month ago

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Beta Limited has opening PP&E balance of 150, a depreciation expense of 75, and a closing PP&E balance of 170, what is B

eta's net capital expenditure

Business

2 answers:

Mariulka [3.1K] · Answer 1 · 2026-02-22T17:14:35+03:00

Net Capital Expenditure of Beta Limited is 95.

Explanation:

This scenario pertains to financial matters within any organization. Capital expenditures are essential for maintaining and managing the fiscal condition effectively, leading to insights into accounting and understanding financial capacities.

In this scenario, the task is to calculate Beta Limited’s net capital expenditure, given the following details:

Opening PP&E: 150

Depreciation Expense: 75

Closing PP&E: 170

The calculation for net capital expenditure is performed by determining the difference between the current period and the prior period’s PP&E, then adding this to the current period's depreciation.

This is a crucial financial component in the growth of a company, as capital expenditures are funds allocated for acquiring and maintaining assets crucial for generating returns and enhancing reputation.

Hence, it can be concluded that

Capital Expenditure (C)= PP&E (current period) – PP&E (prior period) + Depreciation (current period)

C= 170 - 150 + 75

C= 95

Scilla [3.2K] · Answer 2 · 2026-02-22T17:16:23+03:00

The net capital expenditure for Beta is 95.

Explanation:

To determine Beta's net capital expenditure, use the formula below

Closing PP&E + Depreciation Expense - Opening PP&E

= 170 + 75 - 150

= 95

In this computation, the depreciation expense is added, and the PP&E balance is subtracted from the closing PP&E balance to obtain a precise figure.

Alternatively, it can be calculated based on the capital expenditures derived from a company's income statement and balance sheet. Check for the depreciation expense recorded for the current period in the income statement and find the current period’s property, plant, and equipment in the balance sheet.