Question

The cash flow statements for retailing giant​ BigBox, Inc. spanning the period 2013dash2016 are found​ here:

(US$ millions)   12/31/2016   12/31/2015   12/31/2014   12/31/2013
Net Income    $13,070   $12,020   $11,010   $10,000
Depreciation Expense    6,550   6,300   5,050   3,980
Changes in Working Capital    1,210   2,310   2,450   1,030
Cash from Operating Activities    $20,830   $20,630   $18,510   $15,010
Capital Expenditures    $(16,000)   $(14,550)   $(14,030)   $(12,330)
Cash from Investing Activities    $(16,000)   $(14,550)   $(14,030)   $(12,330)
Interest and Financing Cash Flow Items    $(300)   $(290)   $(400)   $110
Total Cash Dividends Paid    (3,650)   (2,820)   (2,480)   (2,210)
Issuance (Retirement) of Stock    (7,950)   (1,510)   (3,570)   (4,480)
Issuance (Retirement) of Debt    1,500   (60)   4,010   4,100
Cash From Financing Activities    $(10,400)   $(4,680)   $(2,440)   $(2,480)
Net Change in Cash    $(5,570)   $1,400   $2,040   $200

How much did BigBox invest in new capital expenditures over the​ period? The amount that BigBox invested in new capital expenditures over the period is $____ million. ????????

Answer 1

Capital expenditure can be found by the following formula as under :

Closing Capital expenditure - Opening Capital Expenditure + Depreciation

But in the given problems, the answer is very straight as the total new capital assets purchased over the period as under :

(US$ millions)	12/31/2016	12/31/2015	12/31/2014	12/31/2013	TOTAL
Net Income	$        13,070		$        12,020		$        11,010		$        10,000		$            46,100
Depreciation Expense	$          6,550		$          6,300		$          5,050		$          3,980		$            21,880
Changes in Working Capital	$          1,210		$          2,310		$          2,450		$          1,030		$              7,000
Cash from Operating Activities (A)		$        20,830		$        20,630		$        18,510		$        15,010		$     74,980
Capital Expenditures	$      -16,000		$      -14,550		$      -14,030		$      -12,330		$          -56,910
Cash from Investing Activities (B)		$      -16,000		$      -14,550		$      -14,030		$      -12,330		$    -56,910
Interest and Financing Cash Flow Items	$            -300		$            -290		$            -400		$             110		$                -880
Total Cash Dividends Paid	$         -3,650		$         -2,820		$         -2,480		$         -2,210		$          -11,160
Issuance (Retirement) of Stock	$         -7,950		$         -1,510		$         -3,570		$         -4,480		$          -17,510
Issuance (Retirement) of Debt	$          1,500		$              -60		$          4,010		$          4,100		$              9,550
Cash From Financing Activities (C)		$      -10,400		$        -4,680		$        -2,440		$        -2,480		$    -20,000
Net Change in Cash (A+B+C)		$        -5,570		$          1,400		$          2,040		$             200		$      -1,930
Hence the new Capital Expenditure purchase is $ $ 56,910