1. 20.

Net non-current assets and depreciation [LO 2.4] On the statement of financial position, the net non-current assets (NFA) account is equal to the gross non-current assets (FA) account (which records the acquisition cost of non-current assets) minus the accumulated depreciation (AD) account (which records the total depreciation taken by the firm against its non-current assets). Using the fact that NFA = FA − AD, show that the expression given in the chapter for net capital spending, NFAend − NFAbeg + D (where D is the depreciation expense during the year), is equivalent to FAend − FAbeg.
Use the following information for Taco Swell Limited for Problems 21 and 22 (assume the tax rate is 30 per cent):

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2020 2019 Revenue $18498 $16549 Depreciation 2484 2376 Cost of sales 6731 5690 Other expenses 1178 1353 Interest Cash 1325 1110 9247 8676 Accounts receivable 13482 11488