For the just completed year, Hanna Company had net income of $77,000. Balances i
ID: 2499178 • Letter: F
Question
For the just completed year, Hanna Company had net income of $77,000. 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 $46,000 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 $77,000. Balances in the company’s current asset and current liability accounts at the beginning and end of the year were as follows:
Explanation / Answer
-34000
net income 77000 Adjustment to convert net income to cash basis Depreciation 46000 Decrease in receivable (192000-164000) 28000 Increase in inventory (358000-442000) -84000 prepaid expense (14000-11500) 2500 decrease in accounts payable (386000-352000)-34000
Decrease in accrued liabilities (13000-8500) -4500 Increase in income tax payable(33000-29000) 4000 net cash provided by operating activity 35000