what happens to each of the three primary financial
statements when capital expenditures decrease?
Answer / Swatantra Kumar Chaudhary
Income Statement (IS): There would be no direct impact on the IS as capital expenditures are non-operating expenses. Balance Sheet (BS): Assets (Plant, Property, and Equipment) might decrease, leading to a reduction in total assets and equity. Cash Flow Statement (CFS): Under Investing Activities, the amount spent on capital expenditures would be lower, resulting in a smaller negative cash flow.
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