Exercise - Net Cash Provided by Operating Activities
For the just completed year, Hanna Company had net income of $49,500. Balances in the company's current asset and current liability accounts at the beginning and end of the year were as follows:
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December 31
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End of Year
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Beginning of Year
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Current assets:
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Cash
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$60,000
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$80,000
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Accounts receivable
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$156,000
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$186,000
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Inventory
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$436,000
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$361,000
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Prepaid expenses
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$12,500
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$14,500
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Current liabilities:
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Accounts payable
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$358,000
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$386,000
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Accrued liabilities
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$7,500
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$12,000
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Income taxes payable
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$36,000
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$28,000
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The Accumulated Depreciation account had total credits of $52,000 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.