Hi guys, I'm trying to model Dillard's financials and I got stuck in the Property Plant & Equipment. I wonder if someone can help me.
I've attached an Excel File so you can see what I'm talking about:
A- Gross PP&E
B - CAPEX
C - Cash from the sale of PP&E
D -Gross PP&E (+) capex) (-) cash from the sale of PP&E
E - Difference between D (-) A
If one adds last year's Gross PP&E to this year's CAPEX, one should get this year's Gross PP&E, right?
Maybe not. If the company has been selling assets, one should also subtract the cash from those sales, right?
The thing is, when I do that math, the row "E" should show a "ZERO", but it's far from that.
Why does this happen? The only reason I can think of is that each year there are assets that become completely depreciated, thus disappearing from the books entirely.
Am I thinking correctly? Am I missing something?
Thank you
[/img] Dillards_Modelling.xlsx