Gross Retirements account

Forecasting Gross Retirements results in Gross Fixed Assets being calculated as:

Operation

Gross Fixed Assets (beginning)

Input

$100

+

Capital Expenditures

Input

50

-

Gross Retirements

Input

20

 

Gross Fixed Assets (ending)

Calc

$130

This method assumes only fully depreciated assets are retired, enabling you to independently forecast actual amounts of retirements and the amount of Fixed Capital Investment in all future periods.