Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Megan Corporation's net income last year was $98,000. 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 $98,000. Changes in the company's balance sheet accounts for the year appear below:

Increases (Decreases)
Asset and Contra-Asset Accounts:
Cash and cash equivalents $ (3,000)
Accounts receivable $ (14,000)
Inventory $ 3,000
Prepaid expenses $ (7,000)
Long-term investments $ 80,000
Property, plant, and equipment $ 55,000
Accumulated depreciation $ 58,000
Liability and Equity Accounts:
Accounts payable $ 0
Accrued liabilities $ 15,000
Income taxes payable $ (11,000)
Bonds payable $ (30,000)
Common stock $ 20,000
Retained earnings $ 62,000

The company paid a cash dividend of $36,000 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 net cash provided by (used in) financing activities last year was:

Multiple Choice

  • $(46,000)

  • $46,000

  • $(10,000)

  • $10,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Social Function Of AccountsReforming Accountancy To Serve Mankind

Authors: John Flower

1st Edition

1138645249, 9781138645240

More Books

Students also viewed these Accounting questions

Question

What are managerial options and why are they important?

Answered: 1 week ago

Question

Do teachers across cultures differ in immediacy? Explain.

Answered: 1 week ago