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:

The Deferred Income Taxes Payable account on the balance sheet increased by $4,000 during the year, and depreciation charges were $20,000.

Required:

Using the indirect method, determine the net cash provided by operating activities for the year.

Transcribed Image Text:

End Beginning of Year of Year Current assets: $30,000 $40,000 Cash $125,000 $106,000 Accounts receivable $213,000 $180,000 Inventory Prepaid expenses $6,000 $7,000 Current liabilities: Accounts payable $210,000 $195,000 $4,000 $6,000 Accrued liabilities