1. What is Fixed Assets Sold?

Fixed Assets Sold represents the value of fixed assets that a company has disposed of during a specific accounting period. It's calculated by comparing the beginning and ending fixed asset balances, accounting for new purchases and depreciation.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Beginning FA — Value of fixed assets at start of period
• Purchases — New fixed assets acquired during period
• Depreciation — Accumulated depreciation during period
• Ending FA — Value of fixed assets at end of period

Explanation: This formula accounts for all changes in fixed assets to determine what portion was sold or disposed of during the period.

3. Importance of Calculating Fixed Assets Sold

Details: Tracking fixed assets sold helps in financial reporting, tax calculations, and understanding capital expenditures. It's essential for accurate balance sheet reporting and cash flow analysis.

4. Using the Calculator

Tips: Enter all values in USD. Ensure you have accurate figures from your balance sheet and fixed asset register. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's included in fixed assets?
A: Fixed assets typically include property, plant, equipment, vehicles, and other long-term tangible assets.

Q2: How does this differ from capital expenditures?
A: Capital expenditures represent new purchases, while fixed assets sold represents disposals. Both are needed for complete fixed asset analysis.

Q3: What if my result is negative?
A: A negative result suggests possible data entry error or that disposals exceeded the net of beginning balance plus purchases minus depreciation.

Q4: How often should this calculation be done?
A: Typically done quarterly for financial reporting and annually for tax purposes.

Q5: Does this include intangible assets?
A: No, this calculation is specifically for tangible fixed assets. Intangible assets require separate tracking.