Question
Megenity Company's net income last year was $194,000. Changes in the company's balance sheet accounts for the year appear below: Debit balances Cash - $6,000
Megenity Company's net income last year was $194,000. Changes in the company's balance sheet accounts for the year appear below:
Debit balances Cash - $6,000 Accounts Receivable - $(10,000) Inventory - $(8,000) Prepaid Expenses - $0 Long Term Investments - $50,000 Plant and Equipment - $45,000 Credit balances Accumulated Depreciation - $59,000 Accounts Payable - $(13,000) Accrued Liabilities - $12,000 Taxes Payable - $10,000 Bonds Payable - $(80,000) Deferred Taxes - $13,000 Common Stock - $20,000 Retained Earnings - $62,000 The company declared and paid cash dividends of $132,000 last year. The following questions pertain to the company's statement of cash flows: Net cash provided by (used in) operating activities last year was: A - $194,000 B - $253,000 C - $234,000 D - $293,000 Net cash provided by (used in) investing activities last year was: A - $(75,000) B - $75,000 C - $(95,000) D - $95,000 Net cash provided by (used in) financing activities last year was: A - $60,000 B - $(60,000) C - $192,000 D - $(192,000) No plant and equipment was disposed of during the year. The free cash flow for the year was: A - $248,000 B - $116,000 C - $161,000 D - $470,000
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