Suppose you have the 2015 statement of comprehensive income for a ﬁrm, along with the 12/31/2014 and 12/31/2015 statement of ﬁnancial positions. How would you calculate net capital
Spending?

Question

Quizplus · Accepted Answer

Net capital spending is calculated by taking the change in net fixed assets, which is given by ending net fixed assets (2015) minus beginning net fixed assets (2014), and adding the depreciation expense for the year (2015). Therefore, the correct calculation is Ending net fixed assets (2015) minus beginning net fixed assets (2014) plus 2015 depreciation.

Suppose You Have the 2015 Statement of Comprehensive Income for a ﬁRm