'QUESTION 34 [12 marks] a) Given the below data: What is the ending PPE balance for 2020? Please follow the BASE method to complete your calculation. (in thousand 2020F2 Assumptions for 20202 2018 2019 1,632,1684 2,119,5324 Revenue Revenue growth 15% Assume a revenue growth rate of 15% PPE Beginning Addition (Capex) Subtraction (Depreciatione Endinge Assume CAPEX is 3% of revenue Depreciation is 10% of beginning PPE 315,5122 ? (4 marks) Show your workings here: 2 2 1 2 2 2 2 1 2 'QUESTION 3 continued: b) Now given the below data, calculate the change in OwC for 2019 and 2020. (in thousandel 2018 2019 2020F2 Assumptions for 20202 Revenue 1,632,1684 2,119,5324 Revenue growth 15% Assume a revenue growth rate of 15% 272,988 530,1092 OCA OCL owce OwC as % of Revenue Change in OWC 120,765 152,223e 298,3984 231,7112 Assume OWC as % of Revenue in 2020 = 20192 ? (4 marks) Show your workings here: 2 2 2 2 2 2 2 2 1 2 2 'QUESTION 3 continued:- c) Should a firm have as much as possible OCL and as little as possible OCA? Briefly explain. (4 marks) e - IIlIIlIlI