Question

Accounting Chapter 14 Help Pt3

Exercise 14-2 Net Cash Provided by Operating Activities [LO14-2] For the just completed year, Hanna Company had net income of $59,500. Balances in the company's current asset and current liability accounts at the beginning and end of the year were as follows December 31 End of Beginning Year of Year Current assets Cash and cash equivalents Accounts receivable Inventory Prepaid expenses $ 59,000$ 78,000 $162,000 $180,000 $442,000 $367,000 $ 11,500 $ 14,000 Current liabilities: Accounts payable Accrued liabilities Income taxes payablee $364,000 $394,000 $ 8,000 13,000 $ 35,000 $ 26,000 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. Required 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.) Hanna Company Statement of Cash Flows-Indirect Method (partial)

Answer 1

Statement of Cash Flows - Indirect Method (Partial )
	Amount in $	Amount in $
Net income		$             59,500
Cash flows from operating activities
Adjustments for:
Depreciation	$             58,000
Decrease in Account receivables	$             18,000
Increase in inventory	$            -75,000
Decrease in Account Payable	$            -30,000
Decrease in Accrued Liabilities	$              -5,000
Increase in Income tax Payable	$                9,000
Decrease in Prepaid Expenses	$                2,500
		$            -22,500
Net cash from operating activities		$             37,000