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21 December, 17:37

Rotweiler Obedience School's December 31, 2015, balance sheet showed net fixed assets of $1,780,000, and the December 31, 2016, balance sheet showed net fixed assets of $2,150,000. The company's 2016 income statement showed a depreciation expense of $332,000. What was the company's net capital spending for 2016? (Enter your answer in dollars, not millions of dollars, e. g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e. g., 32.)

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  1. 21 December, 21:29
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    Answer: Company's net capital spending for 2016 = $702,000

    Explanation:

    Given that,

    On December 31, 2015:

    Net fixed assets = $1,780,000

    On December 31, 2016:

    Net fixed assets = $2,150,000

    Depreciation expense = $332,000

    Therefore,

    Company's net capital spending for 2016:

    = Ending net assets + Depreciation expense - Beginning net assets

    = $2,150,000 + $332,000 - $1,780,000

    = $702,000
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