For the year just completed, Hanna Company had net income of $99,000. Balances in the companys current
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Question:
For the year just completed, Hanna Company had net income of $99,000. 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 | $ | 56,000 | $ | 78,000 |
Accounts receivable | $ | 168,000 | $ | 184,000 |
Inventory | $ | 445,000 | $ | 361,000 |
Prepaid expenses | $ | 12,000 | $ | 13,500 |
Current liabilities: | ||||
Accounts payable | $ | 360,000 | $ | 398,000 |
Accrued liabilities | $ | 8,000 | $ | 12,000 |
Income taxes payable | $ | 33,000 | $ | 27,000 |
The Accumulated Depreciation account had total credits of $40,000 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. (List any deduction in cash and cash outflows as negative amounts.)
Related Book For
Managerial Accounting
ISBN: 9781260247787
17th Edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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