Net capital spending is equal to ending net fixed assets minus beginning net fixed assets plus depreciation.
Net working capital equals the difference between current assets and current liabilities. Where: Short-term assets that are anticipated to be converted to cash within a year are known as current assets. Current liabilities are the short-term debts that are due within a year for a business.
The phrase "net capital" refers to the net worth of an organization. A company's net worth is typically determined by subtracting its total assets from its total liabilities. Deducting assets that are difficult to convert to cash, like inventory or notes receivable, is one way to modify this formula.
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