For the year ended December 31,Year 1,Fields Company made cash payments of $50,000 for dividends,paid interest of $20,500,paid $30,000 cash to suppliers,and purchased equipment for $64,000 cash.What is the net cash used by investing activities for Year 1?
A)$114,000
B)$64,000
C)$20,500
D)$134,500

Question

Quizplus · Accepted Answer

The $64,000 paid to purchase equipment is reported as a cash outflow in the investing activities section.Cash payments for dividends are reported as outflows in the financing activities section.Cash paid for interest and cash paid to suppliers are reported as cash outflows in the operating activities section.

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