Calculating Net Capital Spending Kahne Driving Schools 2006 balance sheet showed net fixed assets of $4.6 million,
Question:
Calculating Net Capital Spending Kahne Driving School’s 2006 balance sheet showed net fixed assets of $4.6 million, and the 2007 balance sheet showed net fixed assets of $5.2 million. The company’s 2007 income statement showed a depreciation expense of $875,000. What was net capital spending for 2007?
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Net capital spe...View the full answer
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
Related Video
Depreciation of non-current assets is the process of allocating the cost of the asset over its useful life. The cost of the asset includes the purchase price, any additional costs incurred to bring the asset to its current condition and location, and any other costs that are directly attributable to the asset. The useful life of the asset is the period over which the asset is expected to be used by the company. To calculate the depreciation, companies use different methods such as straight-line, declining-balance, sum-of-the-years\'-digits, units-of-production, and group depreciation. The chosen method will depend on the type of asset, the company\'s accounting policies, and the accounting standards that are applicable. The straight-line method allocates an equal amount of the asset\'s cost over its useful life, while the declining-balance method calculates depreciation at a fixed rate, typically double the straight-line rate, but the amount of depreciation decreases over time. The sum-of-the-years\'-digits method is similar to the declining-balance method, but the rate of depreciation is calculated using a fraction that is based on the useful life of the asset. It\'s important to note that the depreciation expense will be recorded on the company\'s income statement and the accumulated depreciation will be recorded on the company\'s balance sheet. This will decrease the value of the asset on the balance sheet over time.
Students also viewed these Corporate Finance questions
-
Bantam Eggs 2019 balance sheet showed net fixed assets of $3.82 million, and the 2020 balance sheet showed net fixed assets of $4.63 million. The companys 2020 income statement showed a depreciation...
-
Gordon Driving Schools 2017 balance sheet showed net fixed assets of $1.65 million, and the 2018 balance sheet showed net fixed assets of $1.73 million. The companys 2018 statement of comprehensive...
-
Earnhardt Driving Schools 2010 balance sheet showed net fixed assets of $2.8 million, and the 2011 balance sheet showed net fixed assets of $3.6 million. The companys 2011 income statement showed a...
-
Harry Bhel carries a business as a sole proprietorship. During its 2022 fiscal period, its first year of operations, the business had cash sales of $123,000. It also has sales on account of $46,000,...
-
Show that the force of gravity between the Moon and the Sun is always greater than the force of gravity between the Moon and the Earth.
-
Let f (x) = x2/3. Find f (S) if a) S = {2,1, 0, 1, 2, 3}. b) S = {0, 1, 2, 3, 4, 5}. c) S = {1, 5, 7, 11}. d) S = {2, 6, 10, 14}.
-
What are the six primary approaches for developing components?
-
The defroster of an automobile functions by discharging warm air on the inner surface of the windshield. To prevent condensation of water vapor on the surface, the temperature of the air and the...
-
W = 235 lb/ft L = 10.5 ft L W The proposed beam for the loading diagram above is a steel 5-in nominal extra strong pipe. What is the maximum bending stress?
-
You receive an email from your mentor: Hey, Tough assignment! Welcome to the messy job of...well...cleaning up messes. I've been following our mentions on social media since last night, too, so here...
-
Calculating OCF Prather, Inc., has sales of $14,200, costs of $5,600, depreciation expense of $1,200, and interest expense of $680. If the tax rate is 35 percent, what is the operating cash flow, or...
-
Calculating Additions to NWC The 2006 balance sheet of Rock N Roll Records, Inc., showed current assets of $1,400 and current liabilities of $870 the 2007 balance sheet showed current assets of...
-
In the European Union, it has become important to be able to determine an individual's age when legal documentation of the birth date of an individual is unavailable. In the article "Age Estimation...
-
Factor x 2 = 5 x ( x + 3 6 0 )
-
factor - 4 2 x ^ 2 + 5 7 x - 1 8
-
If 2 logb7=logbanswer, then what is the answer? answer = i I
-
7 5 Solve - +4 for x. X
-
Rock Mountain Company earns a net income of $ 5 7 4 , 0 0 0 and pays dividends of $ 5 2 , 0 0 0 during the period. Rock Mountain has ending retained earnings of $ 9 7 8 , 0 0 0 . The balance in Rock...
-
Susan is quite nearsighted; without her glasses, her far point is \(35 \mathrm{~cm}\) and her near point is \(15 \mathrm{~cm}\). Her glasses allow her to view distant objects with her eye relaxed....
-
Assume a simple Keynesian depression economy with a multiplier of 4 and an initial equilibrium income of $3,000. Saving and investment equal $400, and assume full employment income is $4,000. a. What...
-
Poly(methyl methacrylate) is widely known as Plexiglas. The structural formula for the monomer, methyl methacrylate, is shown below. Write the corresponding line structure for methyl methacrylate:...
-
Time Value On subsidized Stafford loans a common source of financial aid for college students, interest does not begin to accrue until repayment begins. Who receives a bigger subsidy, a freshman or a...
-
Time Value On subsidized Stafford loans a common source of financial aid for college students, interest does not begin to accrue until repayment begins. Who receives a bigger subsidy, a freshman or a...
-
Time Value On subsidized Stafford loans a common source of financial aid for college students, interest does not begin to accrue until repayment begins. Who receives a bigger subsidy, a freshman or a...
-
ABC Hospital is one of two hospitals in the community. The Hospital offers all major specialty services (e.g. cardiology, neurology, pulmonology, etc.) The Hospital is approached by a cardiologist...
-
You obtained job-related information about the HR assistant position from O*Net. Answer the following sections based on that information. QUESTIONS: The following is the list of questions included in...
-
On January 8, the end of the first weekly pay period of the year, Regis Company's employees earned $27,760 of office salaries and $70,840 of sales salaries. Withholdings from the employees' salaries...
Study smarter with the SolutionInn App