December 31 End of Year Beginning of Year Current assets: Cash and cash equivalents.. $30,000 $40,000 Accounts receivable $125,000 $106,000 $213,000 $180,000 Inventory ... Prepaid expenses $6,000 $7,000 Current liabilities: Accounts payable. $210,000 $195,000 $6,000 $30,000 Accrued liabilities ... $4,000 Income taxes payable $34,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Net Cash Provided by Operating Activities

For the just completed year, Hanna Company had net income of $35,000. Balances in the company’s current asset and current liability accounts at the beginning and end of the year were as follows:

The Accumulated Depreciation account had total credits of $20,000 during the year. Hanna Company did not record any gains or losses during the year.

Required:

Using the indirect method, determine the net cash provided by operating activities for the year.

December 31
End of Year Beginning of Year
Current assets:
Cash and cash equivalents..
$30,000
$40,000
Accounts receivable
$125,000
$106,000
$213,000
$180,000
Inventory ...
Prepaid expenses
$6,000
$7,000
Current liabilities:
Accounts payable.
$210,000
$195,000
$6,000
$30,000
Accrued liabilities ...
$4,000
Income taxes payable
$34,000
Transcribed Image Text:December 31 End of Year Beginning of Year Current assets: Cash and cash equivalents.. $30,000 $40,000 Accounts receivable $125,000 $106,000 $213,000 $180,000 Inventory ... Prepaid expenses $6,000 $7,000 Current liabilities: Accounts payable. $210,000 $195,000 $6,000 $30,000 Accrued liabilities ... $4,000 Income taxes payable $34,000
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