Chapter 14, Problem 2E

EXERCISE 14-2 Net Cash Provided by Operating Activities LO14-2
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:

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	$6,000
Income taxes payable	$34,000	$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.