For the year ended December 31, Year 1, Fields Company made cash payments of $57,300 for dividends, paid interest of $26,100, paid $35,300 cash to suppliers, and purchased equipment for $73,300 cash. What is the net cash used by investing activities for Year 1?

Question

Quizplus · Accepted Answer

Net cash used by investing activities is calculated by subtracting the cash inflows from the cash outflows for investing activities. The only cash outflow for investing activities in this scenario is the purchase of equipment for $73,300. Therefore, the net cash used by investing activities is $73,300. None of the other cash payments listed relate to investing activities.

For the Year Ended December 31, Year 1, Fields Company