Megrey Company”s net income last year was $82,000. Changes in the company”s balance sheet accounts for the year appear below:
|
|
Increases |
|
|
(Decreases) |
|
Debit balances: |
|
|
Cash |
$3,000 |
|
Accounts receivable |
$5,000 |
|
Inventory |
$1,000 |
|
Prepaid expenses |
$(8,000) |
|
Long term investments |
$80,000 |
|
Plant and equipment |
$25,000 |
|
Credit balances: |
|
|
Accumulated depreciation |
$66,000 |
|
Accounts payable |
$(7,000) |
|
Accrued liabilities |
$(2,000) |
|
Taxes payable |
$0 |
|
Bonds payable |
$(40,000) |
|
Deferred taxes |
$15,000 |
|
Common stock |
$20,000 |
|
Retained earnings |
$54,000 |
The company declared and paid cash dividends of $28,000 last year. The following questions pertain to the company”s statement of cash flows.
1 The net cash provided by (used in) operating activities last year was:
A) $90,000
B) $156,000
C) $82,000
D) $148,000
2. The net cash provided by (used in) investing activities last year was:
A) $85,000
B) $(85,000)
C) $105,000
D) $(105,000)
3. The net cash provided by (used in) financing activities last year was:
A) $48,000)
B) $(48,000)
C) $20,000
D) $(20,000)