Question

g Micro, Inc., started the year with net fixed assets of $74,300. At the end of the year, there was $95,300 in the same account, and the company's income statement showed depreciation expense of $12,510 for the year. What was the company's net capital spending for the year

Answer 1

$33,510

Step-by-step explanation:

Given that,

Beginning net fixed cost = $74,300

Ending net fixed assets = $95,300

Depreciation expense for the year = $12,510

The assets purchased for the year is determined by subtracting the beginning net fixed assets and by adding depreciation expense to the ending net fixed assets.

Company's net capital spending for the year:

= Ending net fixed assets + Depreciation expense - Beginning net fixed cost

= $95,300 + $12,510 - $74,300

= $33,510