Shown below are the financial statements of Sanders Enterprises. Inc. What is the net capital spending during the most recent year?

2020 & 2021 Balance Sheets
	2020	2021		2020	2021
Cash	975,000	988,000	Accounts Payable	1,580,000	1,612,500
Accounts Receivable	845,000	984,000
Inventory	2,523,000	2,652,300	Long-term debt	8,359,000	9,206,700
TOTAL	4,343,000	4,624,300
Net fixed assets	8,536,000	9,225,400	Retained Earnings	690,000	720,500
TOTAL ASSETS	12,879,000	13,849,700	TOTAL LIABILITIES & EQUITY	12,879,000	13,849,700

2021 Income Statement
Sales	3,500,000
Cost of Goods Sold	1,750,000
Other expenses	220,000
Depreciation	421,000
EBIT	1,109,000
Interest	500,000
Taxable income	609,000
Taxes (21%)	127,890
Net Income	481,110

Answer rating: 100% (QA)

To calculate the net capital spending during the most recent year we need to compare the net fixe... View the full answer