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The financial statements of Rose, Inc. reflect depreciation expenses of $16,800 and interest expenses of $27,200...

The financial statements of Rose, Inc. reflect depreciation expenses of $16,800 and interest expenses of $27,200 for the year. The current assets increased by $19,700 and the net fixed assets increased by $49,700. What is the amount of the net capital spending for the year?

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Answer #1

Net fixed assets increased by $49700

It means Ending Fixed Assets - Opening fixed assets = 49700

Net capital spending formula = Ending fixed assets-Opening fixed assets+Depreciation  
=49700+16800

=   66500
So, net capital spending is $66500  

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