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Question
xM exhibit 12b 2jpg (1419xE x N 1exhibit 13b 1jpg (1383xE x exhibit 13 ezto.mheducation.com/hm.tpx?-0.9245620239883242 1440156559003 opTen Scientific F.-I. 3 piece set, hvoryjad.. 3.20 points For the just completed year, Hanna Company had net income of $42,000. Balances in the company's current asset and current liability accounts at the beginning and end of the year were as follows: ecember 31 . Beginning of Year End of Year Current assets Cash Accounts receivable Inventory Prepaid expenses $ 59,000 $81.000 152,000 $196,000 $ 433,000 $361,000 S 11,000 S 13,000 Current liabilities Accounts payable Accrued liabilities Income taxes payable 32,000 s 360,000 $ 394000 8,000 S 12,500 28,000 taxes payable 32000 5 28 000 The Accumulated Depreciation account had total credits of $56,000 during the year Hanna Company di not record any gains or losses during the year Required Using the indirect methöd determine the net cash provided by operating activities for the year Cist any deduction in cash and cash outfiows as negative amcunts.) Hanna Company Statoment of Cash Flows-Indirect Method (partial) Net income Adjustmens to convert het income to a cash basis Depreciation inciease in acccunts receivable Decrease in inventorExplanation / Answer
Answer:
Particulars Amount ($) Cash flow from operating activities Net income 42000 Adjustment: Dep 56000 Decrease in accounts receivable 44000 Increase in inventory -72000 Decrease in prepaid expenses 2000 Decrease in accounts payable -34000 Decrease in accrued liabilities -4500 Increase in income taxes payable 4000 Net cash provided by operating activities 37500Related Questions
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