For the just completed year, Hanna Company had a net income of $35,000. Balances in the company’scurrent asset and current liability accounts at the beginning and end of the year were:End Beginningof Year of YearCurrent assets:Cash ................................................... $30,000 $40,000Accounts receivable ........................... $125,000 $106,000Inventory ............................................. $213,000 $180,000Prepaid expenses ............................... $6,000 $7,000Current liabilities:Accounts payable ............................... $210,000 $195,000Accrued liabilities ................................ $4,000 $6,000The Deferred Income Taxes Payable account on the balance sheet increased by $4,000 during the year, anddepreciation charges were $20,000.Required:Using the indirect method, determine the net cash provided by operating activities for the year
For the just completed year, Hanna Company had a 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:
End Beginning
of Year of Year
Current assets:
Cash ................................................... $30,000 $40,000
Inventory ............................................. $213,000 $180,000
Prepaid expenses ............................... $6,000 $7,000
Current liabilities:
Accounts payable ............................... $210,000 $195,000
Accrued liabilities ................................ $4,000 $6,000
The
Required:
Using the indirect method, determine the net cash provided by operating activities for the year
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