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Southeastern IT Systems has the following balance sheet and the income statement. Make sure the unit is in million dollars. (unit: $ in millions) Southeastern

Southeastern IT Systems has the following balance sheet and the income statement. Make sure the unit is in million dollars.

(unit: $ in millions)

Southeastern IT Systems

Balance Sheets

2013

2014

2013

2014

Cash

$1,000

$1,200

Accounts payable

$800

$850

Accounts receivable

6,500

7,500

Notes payable

7,500

8,000

Inventory

1,500

2,000

Current liabilities

8,300

8,850

Current assets

9,000

10,700

Long-term debt

1,000

1,000

Net fixed assets

3,000

3,500

Common equity

500

500

Retained earnings

2,200

3,850

Total Assets

$12,000

$14,200

Total Liabilities & Owners Equity

$12,000

$14,200

Income Statement

2014

Net sales

$15,000

Cost of goods sold

10,000

Depreciation

700

EBIT

4,300

Interest expenses

400

Taxable income

3,900

Taxes

1,365

Net income

$2,535

Dividends

( )

What is the net capital spending (NCS) or the capital expenditure for 2014?

$500

$700

$1,200

$3,000

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