In BASE analysis for PPE, what does the 'Add' line represent?

In BASE analysis for PPE, what does the 'Add' line represent?

• A. Beginning PPE.
• B. Depreciation.
• C. Ending PPE.
• D. Capex.

Answer: (D)

The Add line shows additions to property, plant, and equipment during the period — in other words, capital expenditures (Capex). It represents the new purchases that increase the PPE base. Beginning PPE is the starting balance, depreciation reduces value over time and is shown separately, and Ending PPE is the result after adding the new assets and subtracting disposals. So the Add line is the cash outlay for acquiring new PPE, i.e., Capex.

The Add line shows additions to property, plant, and equipment during the period — in other words, capital expenditures (Capex). It represents the new purchases that increase the PPE base. Beginning PPE is the starting balance, depreciation reduces value over time and is shown separately, and Ending PPE is the result after adding the new assets and subtracting disposals. So the Add line is the cash outlay for acquiring new PPE, i.e., Capex.