Suppose You Have the 2018 Statement of Comprehensive Income for a Firm

question 92

Multiple Choice

Suppose you have the 2018 statement of comprehensive income for a firm, along with the 12/31/2017 and 12/31/2018 statement of financial positions. How would you calculate net capital spending?

• A) Ending net fixed assets (2018) minus beginning net fixed assets (2017) plus 2015 depreciation
• B) Beginning net fixed assets (2017) minus ending net fixed assets (2015) plus 2015 depreciation
• C) Beginning net fixed assets (2017) plus ending net fixed assets (2015) minus 2015 depreciation
• D) Ending net fixed assets (2015) minus beginning net fixed assets (2017) plus 2015 taxes paid
• E) Ending net fixed assets (2015) plus beginning net fixed assets (2017) minus 2015 taxes paid

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Definitions:

Net Income

Profit of a company after all expenses, including taxes and costs, have been subtracted from total revenue.