Question
Megan Corporation's net income last year was $106,000. Changes in the company's balance sheet accounts for the year appear below: Increases (Decreases) Asset and Contra-Asset
Megan Corporation's net income last year was $106,000. Changes in the company's balance sheet accounts for the year appear below:
Increases (Decreases) Asset and Contra-Asset Accounts: Cash and cash equivalents $ (9,400) Accounts receivable $ (22,000) Inventory $ 7,000 Prepaid expenses $ (12,600) Long-term investments $ 88,000 Property, plant, and equipment $ 71,000 Accumulated depreciation $ 74,000 Liability and Equity Accounts: Accounts payable $ 0 Accrued liabilities $ 19,120 Income taxes payable $ (12,720) Bonds payable $ (42,000) Common stock $ 28,000 Retained earnings $ 55,600
The company paid a cash dividend of $50,400 and it did not dispose of any long-term investments or property, plant, and equipment. The company did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.
The free cash flow for the year was:
Multiple Choice
$143,000
$314,720
$92,600
$163,600
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started