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A firm's balance sheets as of December 31, 2021, and 2022 show the following items (in millions): 2021: Cash = $8.71; Account Receivable = $3.54;
A firm's balance sheets as of December 31, 2021, and 2022 show the following items (in millions): 2021: Cash = $8.71; Account Receivable = $3.54; Inventory = $3.93; Gross Fixed Assets = $8.81; Accumulated Depreciation = $6.81; Retained Earnings = $1.54; Capital Surplus = $1.7; Common Stock ($0.50 par) = $1.82; Notes Payable = $4.39; Long term debt = $6.65; Accounts Payable = $2.08. 2022: Cash = $10.71; Account Receivable = $2.54; Inventory = $4.43; Gross Fixed Assets = $10.51; Accumulated Depreciation = $7.51; Retained Earnings = $2.54; Capital Surplus = $4.2; Common Stock ($0.50 par) = $3.62; Notes Payable = $4.69; Long term debt = $3.67; Accounts Payable= $1.96. Calculate the net capital spending in 2022. None of these options are correct 3.20 0.70
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