Verizon L 6:59 PM ezto.mheducation.com Chapter 14 instructions help Qvestion 1 (

Question

Verizon L 6:59 PM ezto.mheducation.com Chapter 14 instructions help Qvestion 1 (of 4) 10.00 points For the just completed year, Hanna Company had net income of $35,000. Balances in the company's current asset and current liability accounts at the beginning and end of the year were as follows: Beginning Current assets s 30.000 40,000 Accounts secelvabie Inventory 213,000 180,000 6,000 7.000 Current liabies $ 210,000 195000 4,000 6.000 ncome taxes payable 34,000 30.000 The Accumulated Depreciation account had total credits of $20,000 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.) Hints ReferenceseBook & Resources

Explanation / Answer

HANNA COMPANY STATEMENT OF CASH FLOWS -INDRECT METHOD(PARTIAL) Net Income 35,000 Adjustment to convert net income to a cash basis Add: Depreciation 20,000 Add: Decrease in Prepaid Expense 1,000 Add: Increase in Accounts Payable 14,000 Add: Increase in Income tax payable 4,000 39,000 Less: Increase in Accounts Recievable 19,000 Less: Increase in Inventory 33,000 Less: Decrease in Accrued Liability 2,000 -54,000 Net Cash provided by Operating Activities 20,000

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