1. Earnhardt Driving School's 2008 balance sheet showed net fixed assets of $3.7 million, and the 2009 balance sheet showed net fixed assets of $6.9 million. The company's 2009 income statement showed a depreciation expense of $835,000. What was net capital spending for 2009?
$-2,365,000 $3,200,000 $4,035,000 $2,365,000 $-3,200,000
2. The 2008 balance sheet of Maria's Tennis Shop, Inc., showed long-term debt of $3 million, and the 2009 balance sheet showed long-term debt of $3.5 million. The 2009 income statement showed an interest expense of $370,000. What was the firm's cash flow to creditors during 2009?
$-130,000 $-370,500 $500,370 $-369,500 $500,000