Net capital spending is equal to:
A) net additions to Net Working Capital.
B) the net change in fixed assets.
C) net income plus depreciation.
D) total cash flow to stockholders less interest and dividends paid.

Question

Quizplus · Accepted Answer

Net capital spending measures the net change in a company's fixed assets. This includes the purchase of new fixed assets, less the proceeds from the sale of any existing fixed assets. It does not include changes to net working capital, net income, or cash flows to stockholders.

Net Capital Spending Is Equal To