What Is Capacity Planning? Include an Explanation of What-If Analysis

question 17

Essay

What is capacity planning? Include an explanation of what-if analysis in your answer.

Understand the implications of changing accounting estimates on financial statements.

Calculate accumulated depreciation for assets under straight-line and accelerated depreciation methods.

Understand how depreciation methods impact financial reporting and tax implications.

Recognize obsolescence and its effect on the depreciation and carrying amount of assets.

---

Definitions:

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment, and financial activities.

Noncash Investing

Transactions that involve the exchange of non-monetary assets or liabilities for other non-monetary assets or liabilities, without the use of cash.

Net Increase in Cash

The total change in cash and cash equivalents indicating the difference between cash inflows and outflows over a period.

Presentation of Activities

The structured detailing of actions taken or planned by an organization, often applied in the context of reporting or strategic planning.