Question

Mertis, Inc. reported Net fixed assets as follows on its Balance sheets for December 31, 2011, and December 31, 2012 look as follows:

2011 2012
Net fixed assets 815,000 865,000
On its 2012 Income statement, Mertis recorded a depreciation expense of $34,971. What amount of cash did Mertis spend in 2012 on new fixed assets? (Record your answer without a dollar sign and without commas, for example, a record $32,400 as 32400).

Answer 1

the amount of cash did Mertis spend in 2012 on new fixed assets is $84,971

Step-by-step explanation:

The computation of the amount of cash did Mertis spend in 2012 on new fixed assets is shown below;

= ending net fixed assets + depreciation expense - beginning net fixed assets

= $865,000 + $34,971 - $815,000

= $84,971

Hence, the amount of cash did Mertis spend in 2012 on new fixed assets is $84,971