Megna Company\'s net income last year was $229,000. Changes in the company\'s ba
ID: 2361097 • Letter: M
Question
Megna Company's net income last year was $229,000. Changes in the company's balance sheet accounts for the year appear below: Increases (Decreases) Asset and Contra-Assets Accounts: Cash $5,800 Accounts receivable $7,900 Inventory $(10,900) Prepaid expenses $14,800 Long-term investments $105,100 Property, plant and equipment $101,600 Accumulated depreciation $112,200 Liability and Equity Accounts: Accounts payable $28,200 Accrued liabilities $17,600 Income taxes payable $(39,100) Bonds payable $(73,700) Common stock $44,200 Retained earnings $136,800 The company paid a cash dividend 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 question pertain to the company's statement of cash flows. The net cash provided by (used in) operating activities last year was:Explanation / Answer
Net Income $229,000
Add : Depreciation $112,200
Less : Increase in AR ($7,900)
Add : Decrease in Inventory $10,900
Less : Increase in Prepaid Expense ($14,800)
Add : Increase in AP $28,200
Add : Increase in AL $17,600
Less : Decrease in I. Tax ($39,100)
Net Cash Flow from Operating Activities $336,100