For the just completed year, Hanna Company had net income of $61,000. Balances i
ID: 2483925 • Letter: F
Question
For the just completed year, Hanna Company had net income of $61,000. Balances in the company’s current asset and current liability accounts at the beginning and end of the year were as follows:
December 31
The Accumulated Depreciation account had total credits of $58,000 during the year. Hanna Company did not record any gains or losses during the year.
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.)
For the just completed year, Hanna Company had net income of $61,000. Balances in the company’s current asset and current liability accounts at the beginning and end of the year were as follows:
Hanna Company Statement of Cash Flows-Indirect Method (partial) Net income Adjustments to convert net income to a cash basis: Net cash provided by operating activitiesExplanation / Answer
Solution.
Hanna Company Statement of cash flow - Indirect method (partial ) Net Income 61,000.00 Adjustment to convert nrt income to a cash basis: Depreciation Expense 58,000.00 Accounts receivable 32,000.00 Inventory (87,000.00) Prepaid expenses 2,500.00 Accounts payable (30,000.00) Accrued liabilities (3,500.00) Income taxes payable 7,000.00 (21,000.00) Net cash provided by opereting activities. 40,000.00