Net capital spending is equal to: ending net fixed assets minus beginning net fixed assets plus...

Net capital spending is equal to:

ending net fixed assets minus beginning net fixed assets plus depreciation.

ending total assets minus beginning total assets plus depreciation.

ending net fixed assets minus beginning net fixed assets minus depreciation.

beginning net fixed assets minus ending net fixed assets plus depreciation.

Expert Solution

ending net fixed assets minus beginning net fixed assets plus depreciation.

Net Capital Spending pertains to Fixed assets and depreciation expense. Net Capital spending stands for Amount spent on fixed assets less depreciation.

Let us take an example,

Beginning net fixed assets				$ 1,00,000
Net Capital Spending				$ 50,000
				$ 1,50,000
Depreciation expenses				$ 30,000
Ending Net fixed assets				$ 1,20,000

Suppose in the above formula, amount of Net capital spending is missing, then we find Capital spending as follow:

Net Capital Spending	=	Ending Net fixed Assets - Beginning net fixed assets + Depreciation
	=	$ 1,20,000	-	$ 1,00,000	+	$ 30,000
	=	$ 50,000

jeff jeffy answered 2 years ago

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