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 Income taxes payable $4,000 $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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
Income taxes payable
$4,000
$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
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 Income taxes payable $4,000 $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
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