For the year just completed, Hanna Company had net income of $104,500. Balances in the company’s current asset and current liability accounts at the beginning and end of the year were as follows: December 31 End of YearBeginning of YearCurrent assets: Cash and cash equivalents$ 62,000$ 81,000Accounts receivable$ 158,000$ 180,000Inventory$ 436,000$ 346,000Prepaid expenses$ 11,000$ 14,500Current liabilities: Accounts payable$ 352,000$ 400,000Accrued liabilities$ 9,000$ 12,000Income taxes payable$ 33,000$ 28,000 The Accumulated Depreciation account had total credits of $46,000 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. (List any deduction in cash outflows as negative amounts.) Hanna CompanyStatement of Cash Flows—Indirect Method (partial)

Cash flows from operating activities: It is a section of the Statement of cash flow that explains…

Answered: For the year just completed, Hanna…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 10MC

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For the year just completed, Hanna Company had net income of $104,500. Balances in the company’s current asset and current liability accounts at the beginning and end of the year were as follows:

	December 31
	End of Year	Beginning of Year
Current assets:
Cash and cash equivalents	$ 62,000	$ 81,000
Accounts receivable	$ 158,000	$ 180,000
Inventory	$ 436,000	$ 346,000
Prepaid expenses	$ 11,000	$ 14,500
Current liabilities:
Accounts payable	$ 352,000	$ 400,000
Accrued liabilities	$ 9,000	$ 12,000
Income taxes payable	$ 33,000	$ 28,000

The Accumulated Depreciation account had total credits of $46,000 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. (List any deduction in cash outflows as negative amounts.)

Hanna Company
Statement of Cash Flows—Indirect Method (partial)

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