in a Help Save &Exit; Submit mework 1 Exercise 14-2 Net Cash Provided by Operati

ID: 2432299 • Letter: I

Question

in a Help Save &Exit; Submit mework 1 Exercise 14-2 Net Cash Provided by Operating Activities [LO14-2 6 For the just completed year, Hanna Company had net Income of $78,500. Balances In the company's current asset and current liability accounts at the beginning and end of the year were as follows 60.000 80.000 11,000 13,500 ,500 12,500 egaivalents 33,0028,00 The Accumulated Depreciation account had sotal credts of $52,000 duing the year: Hanna Company did not record any pains or ng the year. Hanna Company did not record any gains or losses during the yeat 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.) Prev 6 of 12 Next> 20 ess 5 8

Explanation / Answer

Hanna Company

Statement of Cash Flows - Indirect method (Partial)

Net income

$ 78,500.00

Adjustments to convert contribution margin to a cash basis

Depreciation expense

$ 52,000.00

Decrease in accounts receivables

$ 24,000.00

Increase in inventory

-$ 93,000.00

Decrease in prepaid expense

$ 2,500.00

Decrease in accounts payable

-$ 28,000.00

Decrease in accrued liabilities

-$ 4,000.00

Increase in income taxes payable

$ 5,000.00

-$ 41,500.00

Net cash provided by operating actibities

$ 37,000.00