Capital Expenditures (CapEx)

Capital equipment provides the business with the means of producing goods and/or services i.e., Return on Assets (ROA).  Weigh each capital expenditure carefully.  For example, instead of purchasing an asset, should you lease it?  If the equipment is fundamental to your company's operation, then in most cases it may make sense to own the equipment directly. 

Most capital equipment over $500 is depreciated, but this is an arbitrary number.  You may wish to consult with your accountant to get his/her recommendation.

There are several steps in this section that may seem tedious but will assist you in evaluating your capital equipment expenditures. 

Additionally, as you add capital equipment expenditures, Intercept performs all deprecation in SLN.  All proformas are constructed from a conservative financial position.  We provide other depreciation methods (accelerated) to provide you with comparative results and its impact on the taxes of your enterprise.

As you add Capital Equipment, you will see the investment on the Cash Flow statement. On the Balance Sheet, you will see the total value of the capital equipment less accumulated depreciation.