Sona is forecasting its financial statements for Year 2. Selected fina

Sona is forecasting its financial statements for Year 2. Selected financial information for Years 1 and 2 is provided in the table. In Year 2 Sona is planning to invest $50 million in CAPEX and forecasted depreciation is $16 million.

What is the Net Property, Plant and Equipment balance in Year 2?

Selected Financial Information
Sona Inc ($ millions)
Year 1 Year 2
PP&E $150
Depreciation 20 16
CAPEX 30 50

A) $184
B) $194
C) $203
D) $209
E) $211

ANSWER

A