7. The financial statements of Edgewater Marina reflect depreciation expenses of $21,600 and interest expenses of $27,900 for the year. The current assets increased by $31,800 and the net fixed assets increased by $28,600. What is the amount of the net capital spending for the year?
Net capital spending can be calculated as the change in net fixed assets plus depreciation expenses.
Net capital spending = Change in net fixed assets + Depreciation expenses
= $28,600 + $21,600
= $50,200.
Therefore, the amount of net capital spending for the year is $50,200.