The financial statements of Backwater Marina reflect depreci

The financial statements of Backwater Marina reflect depreciation expenses of $41,600 and interest expenses of $27,900 for the year. The current assets increased by $31,800 and the net fixed assets increased by $28,600. What is the amount of the net capital spending for the year?

Solution

Net Capital Spending = Depreciation+ (Ending Net Fixed Asset-Beginning Net Fixed Assets)

Net CApial Spending = 41600+ 28600

Net Capital Spending for the year = $70200