I've been using this excel file to study for how 1 change affects the 3 financial statements.
And I was wondering if someone was willing to go through and see if anything is inaccurate? The reason i'm asking so is because when I changed Gain/Loss on PP&E there was no change on the balance sheet and I couldn't figure out why. I reasoned that PP&E didn't change and instead it focused on the "gain" on PPE so like, instead of selling $10 of PPE it would be selling $0 of PPE for $10 but I didn't know if my reasoning made sense.
bump
If you were to simply sell PP&E for its book value then there would be no change on the assets side as you would lose x amount of PPE but gain x amount in cash. However if there is a gain/loss as you've indicated then there is a change and something is probably wrong.
Correct me if I'm wrong.
Thanks, so from what I understand, the excel file is accurate in the sense that its only talking about the gain/loss not necessarily the change in PPE which makes sense. Do you mind taking a couple minutes to look through the rest and see if anything else is weird/off?
Thanks!
I think the point here is that because there is no BV listed for the asset, the model is implicitly accounting for what DJ is saying, leaving only the gain/loss to be factored in which does not affect the PPE value
Thanks, so the excel file is accurate in the sense that its only talking about the gain/loss not necessarily the change in PPE which makes sense. Do you mind taking a couple minutes to look through the rest and see if anything else is weird/off?
Thanks!
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