Projecting PP&E and Intangibles

This question practices a core financial statement analysis skill, building forward schedules for balance sheet assets using the links between the balance sheet, cash flow statement, and income statement. Candidates need to understand how capital expenditures flow into PP&E, how depreciation reduces the carrying value over time, and how to think about other adjustments such as asset sales or write downs when they are relevant. For intangibles, the exercise tests judgment as well as mechanics, since purchases are often less predictable and interviewers want to see whether you know when to rely on management guidance versus a conservative assumption. Interviewers ask this kind of question to check whether you can translate accounting activity into a coherent forecast and keep the model internally consistent.