Lake Manufacturing Financials Income Statement 12 months ending 2012 Sales $9,300,000 Cost of goods sold 5,750,000 Depreciation expense 550,000 Gross profit 3,000,000 Selling & admin expenses 2,200,000 EBIT 800,000 Interest expense 200,000 Profit before tax 600,000 Taxes 375,000 Net income $225,000 Balance Sheet Year ending 2012 2011 Cash 50,000 40,000 Accounts receivable 570,000 600,000 Inventory 530,000 460,000 Total current assets 1,150,000 1,100,000 Fixed assets 2,050,000 1,400,000 Total assets $3,200,000 $2,500,000 Shares-diluted 200,000 Accounts payable Bank loans Total current liabilities LT Bonds Total liabilities Common stock Retained earnings Total equity Total liab. & equity 320,000 300,000 480,000 400,000 800,000 700,000 1,500,000 1,000,000 2,300,000 1,700,000 200,000 200,000 700,000 600,000 900,000 800,000 $3,200,000 $2,500,000 What is the closest amount Lake spent on capital expenditures (aka capex) in 2012? $500,000 $1,000,000 $1,500,000 $2,000,000