Cadbury plc is a global confectionery company. Cadbury is forecasting its financial statements for Year 9. Selected financial information for Years 7 and 8 is provided in the table. In Year 8 Cadbury is planning to invest £300 million in CAPEX
The average depreciation rate is 10%. What is the forecasted depreciation expense in Year 9?
Selected Financial Information
Cadbury Inc (£ millions)
Year 7 Year 8
PP&E 1,904 1,761
Depreciation 196
CAPEX 53
A) £176
B) £206
C) £286
D) £300
E) £322
B
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a. $213,000 b. $113,000 c. $153,000 d. $39,000
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Answer the following statement true (T) or false (F)
To calculate diluted EPS, the accountant does all of the following except:
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