C can be calculated by adding your cash flow from investing actives and financing activities this can be found in the statement of cash flows.
From FCF = NOPAT + Depr change in non cash working capital C
You take the change in total assets and subtract them from the change in total liabilities, for example:
Say Company X has the current information on their balance sheet:
2009
Total Assets= 2000
Total Liabilities=1000
2010
Total Assets= 4000
Total Liabilities=2000
The change in assets is 2000 (4000-2000) and the change in liabilities is 1000 (2000-1000). Subtract the two and you get a CAPEX (capital expenditure) of $1000.
***Edit, this makes absolutely no sense seeing as a balance sheet is supposed to BALANCE and if you followed this equation you would end up with and answer of 0. That is all.
***You would only end up with zero if you used Total Liabilities & Equity. Instead, only use the change in Liabilities.
To calculate household consumption expenditure, make a list of what has been spent for household use. Next, average that out and there is your expenditure amount.
injections into the circular flow of income are basically household consumers' net savings, net taxes and import expenditure. net savings from household consumers goes to the banks which in turn uses the money for investment expenditure(withdrawals) net taxes, goes to the govt which in turn uses it for government expenditure.(withdrawals) import expenditure goes abroad, and in turn uses it for export expenditure. Y= C + I + G + ( X-M)
revenue expenditure
There are 2 types of expenditures: capital expenditure (long-term assets like machinery) and revenue expenditure (raw material).
The control of capital expenditure in a business organization is organizational control. This is often implemented through a budget program.
How do you calculate net working capital?
The effects it would has on net profit and net asset is that there would be an increase in net profit and an increase in net asset as well
The effects it would has on net profit and net asset is that there would be an increase in net profit and an increase in net asset as well
Net Capital Ratio =Total assets / Total Liabilities
The format for capital expenditure budget is to list all the expenditure with their estimates. The cost of capital assets and expenditure must be provided.
Beg. Net Fixed Assets - End. Net fixed Assets - Depreciation Expense= CAPEX
The format for capital expenditure budget is to list all the expenditure with their estimates. The cost of capital assets and expenditure must be provided.
If it is finance lease then it is capital expenditure otherwise it s revenue expenditure
Payable towards capital (equipments) expenditure.
negative expenditure
why capital expenditure are difference from normal day to day expenditure
Accumulated depreciation which is not shown in income and expenditure account as expenditure and the same is included in the net profit and shown separately as depreciation reserved fund while adding it in the capital fund.