For the year just completed, Hanna Company had net income of $35,000. Balances in the company's cur 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 $30,000 $40,000 Accounts receivable $125,000 $106,000 Inventory $213,000 $180,000 Prepaid expenses $6,000 $7,000 Current liabilities: Accounts payable $210,000 $195,000 Accrued liabilities $4,000 Income taxes payable $34,000 $6,000 $30,000 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. EXERCISE 15-3 Calculating Free Cash Flow LO15-3 Page 720
For the year just completed, Hanna Company had net income of $35,000. Balances in the company's cur 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 $30,000 $40,000 Accounts receivable $125,000 $106,000 Inventory $213,000 $180,000 Prepaid expenses $6,000 $7,000 Current liabilities: Accounts payable $210,000 $195,000 Accrued liabilities $4,000 Income taxes payable $34,000 $6,000 $30,000 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. EXERCISE 15-3 Calculating Free Cash Flow LO15-3 Page 720
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
None
Transcribed Image Text:For the year just completed, Hanna Company had net income of $35,000. Balances in the company's cur
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
$30,000
$40,000
Accounts receivable
$125,000
$106,000
Inventory
$213,000
$180,000
Prepaid expenses
$6,000
$7,000
Current liabilities:
Accounts payable
$210,000
$195,000
Accrued liabilities
$4,000
Income taxes payable
$34,000
$6,000
$30,000
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.
EXERCISE 15-3 Calculating Free Cash Flow LO15-3
Page 720
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education