Question
(Suggested time: 4 minutes) Using the following information, which has been extracted from the financial statements of a company, compute the net capital spending
(Suggested time: 4 minutes) Using the following information, which has been extracted from the financial statements of a company, compute the net capital spending (NCS) for 2020. Gross Fixed Assets in 2020 $220,000 Cumulative depreciation in 2020 = $50,000 Gross Fixed Assets in 2019 = $270,000 Working capital in 2019 - $17,000 Working capital in 2020 - $29,000 There is no other long-term assets in the balance sheets of 2019 and 2020. Net income in 2020 = $20,000 Annual depreciation in 2020-$4,000 Interests in 2020- $400 When answering the question (filling in the blank), DO NOT use dollar signs, DO NOT USE commas to separate thousands, DO NOT use parenthesis to denote negative numbers, USE the negative sign in front of first digit for negative numbers, Round to the nearest dollar. The Net Capital Spending (NCS) for 2020 is: Your Answer: Answer
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