Rotweiler Obedience School’s December 31, 2015, balance sheet showed net fixed a
ID: 2815768 • Letter: R
Question
Rotweiler Obedience School’s December 31, 2015, balance sheet showed net fixed assets of $1,795,000, and the December 31, 2016, balance sheet showed net fixed assets of $2,180,000. The company’s 2016 income statement showed a depreciation expense of $335,000.
What was the company's net capital spending for 2016? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Net capital spending $
Explanation / Answer
Ending net fixed assets=Beginning net fixed assets+Net capital spendingDepreciation
2,180,000=1,795,000+Net capital spending-335000
Net capital spending=2,180,000-1,795,000+335000
which is equal to
=$720,000.
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