Challenge (Questions 23-35) 23. Net Fixed Assets and Depreciation (L03) On the statement of financial position, the net fixed assets (NFA) account is equal to the gross fixed assets (FA) account (which records the acquisition cost of fixed assets) minus the accumulated depreciation (AD) account (which records the total depreciation taken by the firm against its fixed assets). Using the fact that NFA = FA - AD. show that the expression given in the chapter for net capital spending, NFAend - NFAbcg +D (where D is the depreciation expense during the year), is equivalent to FAend-FAbes. Use the following information for Clarington Ine for Problems 24 and 25 (assume the sex rate/s 34%) 2017 2018 Sales $11.573 $12.936 Depreciation 1,661 1.736 Cost of goods sold 3.979 4,707 Other expenses 9:46 824 Interest 776 926 Cash 6,067 6.466 Accounts receivable 8.034 9.427 Short term notes payable 1,171 1.147 Longterm debe 20,320 24.696 Netfied assets 30,888 Accounts payable 4.384 4.6-44 Long-term debt 20,320 24.696 Net fixed assets 50,888 54,273 Accounts payable 4,384 4.644 Inventory 14.283 15.288 Dividends 1.411 1.618