14) MC Qu. 115 Megan Corporations net income ... Megan Corporation\'s net income

ID: 2576976 • Letter: 1

Question

14) MC Qu. 115 Megan Corporations net income ...

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

($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

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:

A)($10,000)

B)$10,000

C)$46,000

D)($46,000)