Reference no: EM13569434

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:

1.Net cash provided by (used in) operating activities last year was:
A - $194,000
B - $253,000
C - $234,000
D - $293,000

2.Net cash provided by (used in) investing activities last year was:
A - $(75,000)
B - $75,000
C - $(95,000)
D - $95,000

3.Net cash provided by (used in) financing activities last year was:
A - $60,000
B - $(60,000)
C - $192,000
D - $(192,000)

4.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