2. Megan Corporations net income last year was $106,000. Changes in.docx - 2 Megan Corporation's net income last year was $106,000 Changes in the

2. Megan Corporations net income last year was $106,000. Changes in.docx

This preview shows page 1 - 3 out of 3 pages.

Image of page 1
2. Megan Corporation's net income last year was $106,000. Changes in the company's balance sheet accounts for the year appear below: Increases (Decreases) Asset and Contra-Asset Accounts Cash and cash equivalents $(9,400) (22,000) $ 7,000 Accounts receivable Inventory Prepaid expenses $(12,600) $ 88,000 Long-term investments Property, plant, and equipment Accumulated depreciation Liability and Equity Accounts $ 71,000 $ 74,000 Accounts payable 0 $ 19,120 $ (12,720) $ (42,000) Accrued liabilities Income taxes payable Bonds payable Common stock $28,000 Retained earnings $ 55,600 The company paid a cash dividend of $50,400 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 free cash flow for the year was: Financial statements of Rukavina Corporation follow
Image of page 2
Image of page 3

You've reached the end of your free preview.

Want to read all 3 pages?

Unformatted text preview: Comparative Balance Sheet Ending Beginn ing Balance Balance Assets: $ 38 $ 41 Cash and cash equivalents Accounts receivable 60 65 48 49 Inventory Property, plant, and equipment 456 430 228 215 Less accumulated depreciation $374 $370 Total assets Liabilities and stockholders' equity $ 92 $ 75 Accounts payable Bonds payable 246 290 Common stock 88 87 Retained earnings (52) (82) $374 $370 Total liabilities and stockholders' equity Income Statement Sales $590 413 Cost of goods sold Gross margin Selling and administrative expense 177 118 Net operating income 59 18 Income taxes $ 41 Net income Cash dividends were $11. The company did not dispose of any property, plant, and equipment. It 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) operating activities for the year was:...
View Full Document

  • Fall '17
  • Bob Maxwell

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors