For the Year Ended December 31,2016,Fields Company Made Cash Payments

question 55

Multiple Choice

For the year ended December 31,2016,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.The amount of cash used by investing activities for 2016 is:

• A)$114,000.
• B)$64,000.
• C)$20,500.
• D)$134,500.

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Definitions:

Factory Depreciation

The allocation of the cost of a manufacturing or production plant and its equipment over their useful lives, reflecting the usage and wear and tear of fixed assets.

Variable Overhead

Indirect production costs that fluctuate with the level of output, such as utilities or materials.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity level, allowing for more accurate cost control.

Monthly Sales

The total revenue generated from sales within a month, often tracked to assess business performance.