Question

Logano Driving School’s 2017 balance sheet showed net fixed assets of $4.6 million, and the 2018 balance sheet showed net fixed assets of $5.2 million. The company’s 2018 income statement showed a depreciation expense of $330,000. What was net capital spending for 2018? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Answer 1

Answer:

$270,000

Explanation:

Net capital spending = Increase in net fixed assets + Depreciation expenses

= [ Net fixed assets at year end - Net fixed assets at the beginning ] + Depreciation expenses

= [$5,200,000 - $4,600,000] + $330,000

= $600,000 - $330,000

= $270,000