Learn how to calculate a growing company's forecasted PP&E expenditure along with depreciation and accumulated depreciation for the future.
- [Instructor] As your business continues to grow,…you'll have to make investments in property and equipment.…This could include more buildings, warehouses,…mannequins, checkout cashier drawers, all the above.…These expenses are referred to as capital investments,…and they're expected to grow proportionately with sales.…So, traditionally, PP&E really doesn't follow…a linear trend, there are periods of saving,…and then periods of spending, and saving,…and spending, and so on, and so forth,…especially when it comes to large purchases.…PP&E expenditures require a lot of upfront planning.…
So, let's look at the balance sheet,…and try to calculate some PP&E for the future.…I'm in 03_04_BS_Begin.…It's basically just a continuation from the previous video.…So let's think about what kind…of equipment you'll need to purchase.…You may want new cash registers,…or you may want more racks to hold your stuff,…or some extra warehouse space.…So let's imagine that you start with the smaller purchases,…and plan to move to larger ones as time progresses.…
- The four different types of financial statements
- Moving averages
- Seasonally adjusted trends
- Pro forma statements
- Sales forecasting
- Forecasting expenses
- Projecting cash flow
- Regression analysis
Skill Level Intermediate
Finance Foundations: Business Valuationwith Jim Stice1h 49m Appropriate for all
1. Finance Basics
2. Simple Financial Forecasting
3. Pro Forma Financial Statements
4. Projecting Cash Flows
5. Introduction to Regression Analysis
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