The balance sheet of a firm shows beginning net fixed assets of $348,200 and ending net fixed assets of $371,920.The depreciation expense for the year is $46,080 and the interest expense is $11,460.What is the amount of the net capital spending?
A)-$22,360
B)-$4,780
C)$23,720
D)$58,340
E)$69,800

Question

Quizplus · Accepted Answer

Net capital spending is calculated as the change in net fixed assets plus depreciation. The change in net fixed assets is $371,920 - $348,200 = $23,720. Adding the depreciation expense of $46,080 gives $23,720 + $46,080 = $69,800.

The Balance Sheet of a Firm Shows Beginning Net Fixed