Net capital spending is equal to:
A) net additions to net working capital.
B) the net change in fixed assets.
C) net income plus depreciation.
D) total cash flow to stockholders less interest and dividends paid.
E) the change in total assets.

Question

Quizplus · Accepted Answer

Net capital spending represents the net change in a company's fixed assets. It is calculated as the difference between capital expenditures (spending on fixed assets) and depreciation expense. Thus, net capital spending is equal to the net change in fixed assets.

Net Capital Spending Is Equal To