Question

For the year ended December 31, Year 1, Fields Company made cash payments of $64,000 for...

For the year ended December 31, Year 1, Fields Company made cash payments of $64,000 for dividends, paid interest of $32,800, paid $42,000 cash to suppliers, and purchased equipment for $80,000 cash. What is the net cash used by investing activities for Year 1?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Based on the observation of the question, we can classify the expenses as follows:-

Cash payments for dividends - $64,000 ( Financing activity)

Cash payment for Interest - $32,800 (Operating activity)

Cash payment to suppliers - $42,000 (Operating activity)

Purchase of equipment for cash - $80,000 (Investing activity)

Based on the above considerations, we observe that the cash paid for purchase of equipment is the only Investment activity. Hence, the Net cash used by Investing activities for Year 1 = $80,000.

Please let me know if you have any questions via comments and all the best :)

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The following information is available from Bromfield Co.’s accounting records for the year ended December 31,...
The following information is available from Bromfield Co.’s accounting records for the year ended December 31, 2019 (amounts in millions): Cash dividends declared and paid $ 329 Interest and taxes paid 68 Collections from customers 1,332 Payment of long-term debt 212 Purchase of land and buildings 160 Cash paid to suppliers and employees 835 Issuance of preferred stock 311 Proceeds from the sale of equipment 53 Required: Calculate the net cash provided (used) by operating activities for Bromfield Co. for...
The following information is available from Bromfield Co.’s accounting records for the year ended December 31,...
The following information is available from Bromfield Co.’s accounting records for the year ended December 31, 2019 (amounts in millions): Cash dividends declared and paid $ 339 Interest and taxes paid 105 Collections from customers 1,339 Payment of long-term debt 218 Purchase of land and buildings 166 Cash paid to suppliers and employees 832 Issuance of preferred stock 311 Proceeds from the sale of equipment 52 Required: Calculate the net cash provided (used) by operating activities for Bromfield Co. for...
The following information is available from Gray Co.'s accounting records for the year ended December 31,...
The following information is available from Gray Co.'s accounting records for the year ended December 31, 2016 (amounts in millions): Cash dividends declared and paid $ 525 Retirement of bonds payable at maturity 300 Interest and taxes paid 220 Proceeds of common stock issued 825 Proceeds from the sale of land 250 Collections from customers 4,720 Cash paid to suppliers and employees ? Purchase of buildings and equipment ? a. The net cash provided by operating activities for Gray Co....
A summary of cash flows for Paradise Travel Service for the year ended May 31, 20Y6,...
A summary of cash flows for Paradise Travel Service for the year ended May 31, 20Y6, follows: Cash Flows Cash receipts: Cash received from customers $1,486,000 Cash received from issuing common stock 37,000 Cash payments: Cash paid for operating expenses $1,219,000 Cash paid for land 178,000 Cash paid as dividends 23,000 The cash balance as of June 1, 20Y5, was $246,000. Labels Cash flows from financing activities Cash flows from investing activities Cash flows from operating activities Cash flows used...
A summary of cash flows for Parker Consulting Group for the year ended January 31, 20Y4,...
A summary of cash flows for Parker Consulting Group for the year ended January 31, 20Y4, follows: Cash receipts: Cash received from customers $638,000 Cash received from issuing common stock 67,500 Cash payments: Cash paid for operating expenses 475,000 Cash paid for land 89,000 Cash paid for dividends 19,000 The cash balance as of February 1, 20Y3, was $56,500. Labels Cash flows from financing activities Cash flows from operating activities Cash flows from investing activities Cash flows used for financing...
This information is for Pharoah Company for the year ended December 31, 2017. Cash received from...
This information is for Pharoah Company for the year ended December 31, 2017. Cash received from lenders $21,200 Cash received from customers 45,600 Cash paid for new equipment 28,600 Cash dividends paid 5,800 Cash paid to suppliers 15,100 Cash balance 1/1/17 12,000 (a) Prepare the 2017 statement of cash flows for Pharoah Company. (List negative amounts either with a negative sign preceding the number e.g. -15,000 or in parentheses e.g. (15,000).)
Selected information taken from the financial statements of Verbeke Co. for the year ended December 31,...
Selected information taken from the financial statements of Verbeke Co. for the year ended December 31, 2016, follows: Gross profit $413,000 General and administrative expenses 84,000 Net cash used by investing activities 107,000 Dividends paid 54,000 Interest expense 65,000 Net sales 741,000 Advertising expense 76,000 Accounts payable 102,000 Income tax expense 81,000 Other selling expenses 44,000 Required:   a. Calculate income from operations (operating income) for the year ended December 31, 2016. b. Calculate net income for the year ended December...
Cash Flows from Investing and Financing Activities Determine the amount of cash received and paid for...
Cash Flows from Investing and Financing Activities Determine the amount of cash received and paid for financing and investing activities and the cash flows as they would appear on Rogerson’s statement of cash flows for the year ended December 31, 20-2. Use a minus to indicate any decreases in cash or cash outflows. Rogerson Company’s comparative balance sheet as of December 31, 20-2 and 20-1, showed the following with regard to investing and financing activities: 20-2 20-1 Building $130,100    $0   ...
1. Martinez Corporation had January 1 and December 31 balances as follows. 1/1/17 12/31/17 Inventory $78,000...
1. Martinez Corporation had January 1 and December 31 balances as follows. 1/1/17 12/31/17 Inventory $78,000 $93,000 Accounts payable 59,000 66,000 For 2017, cost of goods sold was $486,000. Compute Martinez’s 2017 cash payments to suppliers. Cash payments to suppliers $ 2. In 2017, Grouper Corporation had net cash provided by operating activities of $552,000, net cash used by investing activities of $1,057,000, and net cash provided by financing activities of $573,000. At January 1, 2017, the cash balance was...
FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $ 58,900 $...
FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $ 58,900 $ 79,500 Accounts receivable 74,830 56,625 Inventory 284,656 257,800 Prepaid expenses 1,270 2,015 Total current assets 419,656 395,940 Equipment 151,500 114,000 Accum. depreciation—Equipment (39,625 ) (49,000 ) Total assets $ 531,531 $ 460,940 Liabilities and Equity Accounts payable $ 59,141 $ 123,675 Short-term notes payable 11,800 7,200 Total current liabilities 70,941 130,875 Long-term notes payable 62,000 54,750 Total liabilities 132,941 185,625 Equity Common stock, $5...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT