Megan Corporation's Net Income Last Year Was $98,000

question 103

Multiple Choice

Megan Corporation's net income last year was $98,000.Changes in the company's balance sheet accounts for the year appear below: The company paid a cash dividend of $36,000 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. The free cash flow for the year was:

• A)$123,000
• B)$87,000
• C)$142,000
• D)$269,000

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Definitions:

Output

Refers to the final product, service, or result produced by a process, system, or activity.

Resources

Assets, materials, and inputs that an organization or individual utilizes to conduct operations, create products, or provide services.

Work

The effort or activity directed toward the production or accomplishment of something.

Employees

Individuals who are hired by a business or organization to perform work and are typically paid wages or salaries in return for their labor.