Question

Micro, Inc., started the year with net fixed assets of $74,675. At the end of the year, there was $95,825 in the same account, and the company's income statement showed depreciation expense of $12,795 for the year. What was the company's net capital spending for the year

Answer 1

$33,945

Step-by-step explanation:

Calculation to determine What was the company's net capital spending for the year

Using this formula

Net capital spending=Ending net fixed assets-Beginning net fixed assets +Depreciation expense

Let plug in the formula

Net capital spending = $95,825 − $74,675 + $12,795

Net capital spending =$33,945

Therefore the company's net capital spending for the year is $33,945