For the just completed year, Hanna Company had net income of $66,000. Balances in the company’s current asset and current liability accounts at the beginning and end of the year were as follows: December 31 End of Year Beginning of Year Current assets: Cash and cash equivalents $ 60,000 $ 76,000 Accounts receivable $ 166,000 $ 186,000 Inventory $ 433,000 $ 352,000 Prepaid expenses $ 12,500 $ 14,000 Current liabilities: Accounts payable $ 364,000 $ 386,000 Accrued liabilities $ 8,500 $ 11,500 Income taxes payable $ 34,000 $ 28,000 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. (List any deduction in cash and cash outflows as negative amounts.)
For the just completed year, Hanna Company had net income of $66,000. Balances in the company’s current asset and current liability accounts at the beginning and end of the year were as follows: December 31 End of Year Beginning of Year Current assets: Cash and cash equivalents $ 60,000 $ 76,000 Accounts receivable $ 166,000 $ 186,000 Inventory $ 433,000 $ 352,000 Prepaid expenses $ 12,500 $ 14,000 Current liabilities: Accounts payable $ 364,000 $ 386,000 Accrued liabilities $ 8,500 $ 11,500 Income taxes payable $ 34,000 $ 28,000 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. (List any deduction in cash and cash outflows as negative amounts.)
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter23: Statement Of Cash Flows
Section: Chapter Questions
Problem 4SEB
Related questions
Question
For the just completed year, Hanna Company had net income of $66,000. Balances in the company’s current asset and current liability accounts at the beginning and end of the year were as follows:
December 31 |
||||
End of Year | Beginning of Year | |||
Current assets: | ||||
Cash and cash equivalents | $ | 60,000 | $ | 76,000 |
$ | 166,000 | $ | 186,000 | |
Inventory | $ | 433,000 | $ | 352,000 |
Prepaid expenses | $ | 12,500 | $ | 14,000 |
Current liabilities: | ||||
Accounts payable | $ | 364,000 | $ | 386,000 |
Accrued liabilities | $ | 8,500 | $ | 11,500 |
Income taxes payable | $ | 34,000 | $ | 28,000 |
The
Required:
Using the indirect method, determine the net cash provided by operating activities for the year. (List any deduction in cash and
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning