Net Fixed Assets and Depreciation (LO3) On the statement of financial position, the net fixed assets (NFA) acce to the gross fixed assets (FA) account (which records the acquisition cost of fixed assets) minus the accumulated (AD) account (which records the total depreciation taken by the firm against its fixed assets). Using the fact tha NFA = FA - AD, show that the expression given in the chapter for net capital spending, NFAend - NFAbeg is the depreciation expense during the year), is equivalent to FAend FAbeg. Use the following information for Clarington Inc. for Problems 24 and 25 (assume the tax rate is 34%): 2017 2018 Sales $11.573 $12.936 Depreciation 1.661 1,736 Cost of goods sold 3.979 4.707 Other expenses 946 824 Interest 776 926 Cash 6,967 6.466 Accounts receivable 8.034 9.427 1,171 1,147 Short-term notes payable 20.320 24.696 Long-term debt 50.888 54,273 Net fixed assets 4.384 4.644 Accounts payable 14,283 15.288 Inventory 1,411 1.618 Dividends