For the year just completed, Hanna Company had net income of $35,000. Balances in the company's...

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For the year just completed, 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: Current asseta: Cash and cash equivalenta Accounts receivable Inventory Prepaid expenses Current liabilition: Accounts payable Acerand liabilities Income taxes payable December 31 End of Tear Net income Beginning of Year $ 30,000 $ $125,000 $ $213,000 $ $ 4,000 210,000 $4,000 $ $ 34,000 $ 40,000 106,000 100,000 7,000 The Accumulated Depreciation account had total credits of $20,000 during the year. Hanne Company did not record any gains or losses during the year. arts to convert ret incoma a cash basis 195,000 4,000 30,000 Required: Using the indirect method, determine the net cash provided by operating activities for the year. (List any deduction in cash outflows as negative amounts.) Hanna Company Statement of Cash Flows-Indirect Method (partial) 30.000 int ances Assets Current asseta: Cash Accounts receivable Inventory Prepaid expenses Total current assets Long-term investments Plant and equipment Less accumulated depreciation Net plant and equipment Total assets numu sumpang Comparative Balance Sheet at July 31 Liabilities and Stockholders' Equity Current liabilities: Accounts payable. Accrued liabilition Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Sales Rusco Company Income Statement For This Year Ended July 31 This Year $ 8,000 120,000 140,000 5,000 273,000 50,000 430,000 60,000 370,000 $693,000 $123,000 8,000 20,000 151,000 70,000 221,000 366,000 106,000 472,000 $693,000 $500,000 Last Year $ 21,000 80,000 90,000 9,000 200,000 70,000 300,000 50,000 250,000 $520,000 $ 60,000 17,000 12,000 89,000 89,000 346,000 85,000 431,000 $520,000 Rusco Company Income Statement For This Year Ended July 11 Sales Coat of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating itemsi Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net Income $10,000 (2.000) The following additional information is available for this year. $500,000 300,000 200,000 158,000 42.000 8.000 50,000 20,000 $ 30,000 a. The company declared and paid a cash dividend. b. Equipment was sold during the year for $8,000. The equipment originally cost $20,000 and had accumulated depreciation of $10,000 c. Long-term investments that cost $20,000 were sold during the year for $30,000 d. The company did not retire any bonds payable or repurchase any of its common stock. Required: 1. Using the Indirect method, compute the net cash provided by used in operating activities for this year. 2. Prepare a statement of cash flows for this year. 3. Compute free cash flow for this year For the year just completed, 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: Current asseta: Cash and cash equivalenta Accounts receivable Inventory Prepaid expenses Current liabilition: Accounts payable Acerand liabilities Income taxes payable December 31 End of Tear Net income Beginning of Year $ 30,000 $ $125,000 $ $213,000 $ $ 4,000 210,000 $4,000 $ $ 34,000 $ 40,000 106,000 100,000 7,000 The Accumulated Depreciation account had total credits of $20,000 during the year. Hanne Company did not record any gains or losses during the year. arts to convert ret incoma a cash basis 195,000 4,000 30,000 Required: Using the indirect method, determine the net cash provided by operating activities for the year. (List any deduction in cash outflows as negative amounts.) Hanna Company Statement of Cash Flows-Indirect Method (partial) 30.000 int ances Assets Current asseta: Cash Accounts receivable Inventory Prepaid expenses Total current assets Long-term investments Plant and equipment Less accumulated depreciation Net plant and equipment Total assets numu sumpang Comparative Balance Sheet at July 31 Liabilities and Stockholders' Equity Current liabilities: Accounts payable. Accrued liabilition Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Sales Rusco Company Income Statement For This Year Ended July 31 This Year $ 8,000 120,000 140,000 5,000 273,000 50,000 430,000 60,000 370,000 $693,000 $123,000 8,000 20,000 151,000 70,000 221,000 366,000 106,000 472,000 $693,000 $500,000 Last Year $ 21,000 80,000 90,000 9,000 200,000 70,000 300,000 50,000 250,000 $520,000 $ 60,000 17,000 12,000 89,000 89,000 346,000 85,000 431,000 $520,000 Rusco Company Income Statement For This Year Ended July 11 Sales Coat of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating itemsi Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net Income $10,000 (2.000) The following additional information is available for this year. $500,000 300,000 200,000 158,000 42.000 8.000 50,000 20,000 $ 30,000 a. The company declared and paid a cash dividend. b. Equipment was sold during the year for $8,000. The equipment originally cost $20,000 and had accumulated depreciation of $10,000 c. Long-term investments that cost $20,000 were sold during the year for $30,000 d. The company did not retire any bonds payable or repurchase any of its common stock. Required: 1. Using the Indirect method, compute the net cash provided by used in operating activities for this year. 2. Prepare a statement of cash flows for this year. 3. Compute free cash flow for this year

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