Exercise 12-2 Net Cash Provided by Operating Activities [LO12-2]

For the just completed year, Hanna Company had net income of $89,000. Balances in the companys 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	$	63,000	$	77,000
Accounts receivable	$	162,000	$	184,000
Inventory	$	445,000	$	346,000
Prepaid expenses	$	11,500	$	13,500
Current liabilities:
Accounts payable	$	358,000	$	386,000
Accrued liabilities	$	8,500	$	11,500
Income taxes payable	$	32,000	$	28,000

The Accumulated Depreciation account had total credits of $50,000 during the year. Hanna Company did not record any gains or losses during the year.

Required:

Use the indirect method to determine the net cash provided by (or used in) operating activities for the year. (List any deduction in cash and cash outflows as negative amounts.)