Capital expenditures are subtracted in the calculation of net operating income.
A corporation uses capital expenditures to pay for the purchase, maintenance, and improvement of tangible assets including land, buildings, machinery, and other physical assets. It is frequently used by businesses to launch new initiatives or make investments.
Making capital investments in fixed assets can involve fixing a roof (if the roof's useful life is extended), buying equipment, or constructing a new factory. Companies make this kind of financial investment to broaden the scope of their operations or to add some potential economic gain.
Learn more about capital expenditures with the help of the given link:
brainly.com/question/18915700
#SPJ4
