answer question 23 with the information given in question 22

22. Net Fixed Assets and Depreciation [LO4] On the balance sheet, the net fixed assets (NFA) account is equal to the gross fixed assets (FA) account (which records the acquisition cost of fixed assets) minus the accumulated depreciation (AD) account (which records the total depreciation taken by the firm against its fixed assets). Using the fact that NFA =FAAD, show that the expression given in the chapter for net capital spending, NFAendNFAbeg+D (where D is the depreciation expense during the year), is equivalent to FAendFAbeg. Use the following information for Taco Swell, Inc., for Problems 23 and 24 (assume the tax rate is 21 percent): 23. Financial Statements [LO1] Draw up an income statement and balance sheet for this company for 2020 and 2021