For the just completed year, Hanna Company had net income of $71,500. Balances i

Question

For the just completed year, Hanna Company had net income of $71,500. Balances in the company's current asset and current liability accounits at the beginning and end of the year were as follows: The Accumulated Depreciation account had total credits of $42,000 during the year. Hanna Company did not record any gains or losses during the year. Use the indirect method to determine the net cash provided by (or used in) operating activities for the year. (List any deduction in cash and cash outflows as negative amounts.)

Explanation / Answer

Decrease in Account receivable

Deacrase in Account Payable

Decrease in accrued liabilities

Deacrease in Pre Paid expenses

Increase in Income tax payable

Hanna Company Statement of Cash Flows - Indirect Method(Partial) Net Income $   71,500.00 Adjustment to convert net income to a cash basis 1 Deprection 42000 2

Decrease in Account receivable

32000 3 Increase in Inventory -69000 4

Deacrase in Account Payable

-44000 5

Decrease in accrued liabilities

-4500 6

Deacrease in Pre Paid expenses

2500 7

Increase in Income tax payable

7000 $ -34,000.00 Net cash provided by(used in) operating activites $   37,500.00

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---