Question

Micro, Inc., started the year with net fixed assets of $75,300. At the end of the year, there was $96,700 in the same account, and the company's income statement showed depreciation expense of $13,270 for the year. What was the company's net capital spending for the year?

Answer 1

Answer:

$158,730

Explanation:

Mario incoporation started the year with a net fixed assets of $75,300

At the end of the year the net fixed assets was $96,700

The depreciation expense is $13,270

Therefore the company's net capital spending for the year can be calculated as follows

= $96,700+$75,300-$13,270

= $172,000 - $13,270

= $158,730

Hence the company's net capital spending for the year is $158,730