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Megan Corporation\'s net income last year was $103,000. Changes in the company\'

ID: 2655363 • Letter: M

Question

Megan Corporation's net income last year was $103,000. Changes in the company's balance sheet accounts for the year appear below:

The company paid a cash dividend of $45,000 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.

$135,500

$90,500

$155,500

$297,860

Megan Corporation's net income last year was $103,000. Changes in the company's balance sheet accounts for the year appear below:

Explanation / Answer

The free cash flow was $90,500.