6 For the just completed year, Hanna Company had net income of $36,500. Balances

Question

6 For the just completed year, Hanna Company had net income of $36,500. 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 Beginning Year of Year Current assetst Cash and cash equivalents Accounts receivable Inventory Prepaid expenses $ 62,000 75,000 $152,000 $196,000 $448, 000 $355,000 $ 12,000 $ 14,000 points Skipped Current liabilities: Accounts payable Accrued liabilities $364,000 $380,000 $ 8,500 $ 11,500 $ 35,000 $ 28,000 Income taxes payable References The Accumulated Depreciation account had total credits of $56,000 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.) Hanna Company Statement of Cash Flows-Indirect Method (partial) 0

Explanation / Answer

Statement of Cash Flows—Indirect Method (partial) Net income 36500 Adjustments to convert net income to a cash basis: Depreciation 56000 Decrease in accounts receivable 44000 Increase in inventory -93000 Decrease in prepaid expenses 2000 Decrease in accounts payable -16000 Decrease in accrued liabilities -3000 Increase in income taxes payable 7000 -3000 Net cash provided by operating activities 33500

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