For the year just completed, Hanna Company had net income of $43,500. 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 YearBeginning of Year Current assets: Cash and cash equivalents $ 63,000 $ $ 152,000 $ $ 436,000 $ $ 11,500 $ 83,000 198,000 361,000 15,000 Accounts receivable Inventory Prepaid expenses Current liabilities: Accounts payable Accrued liabilities Income taxes payable $ 368,000 $ 390,000 12,000 30,000 $ 8,500 $ $ 33,000 $
For the year just completed, Hanna Company had net income of $43,500. 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 YearBeginning of Year Current assets: Cash and cash equivalents $ 63,000 $ $ 152,000 $ $ 436,000 $ $ 11,500 $ 83,000 198,000 361,000 15,000 Accounts receivable Inventory Prepaid expenses Current liabilities: Accounts payable Accrued liabilities Income taxes payable $ 368,000 $ 390,000 12,000 30,000 $ 8,500 $ $ 33,000 $
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter2: Financial Statements And The Annual Report
Section: Chapter Questions
Problem 2.5E: Classification of Assets and Liabilities Indicate the appropriate classification of each of the...
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What is the Required, otherwise meaning: the Operating Activities section of the Cash Flow Statement using the INDIRECT METHOD?
Transcribed Image Text:For the year just completed, Hanna Company had net income of $43,500. 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 YearBeginning of Year
Current assets:
Cash and cash equivalents $ 63,000 $
$ 152,000 $
$ 436,000 $
$ 11,500 $
83,000
198,000
361,000
15,000
Accounts receivable
Inventory
Prepaid expenses
Current liabilities:
Accounts payable
$ 368,000 $
390,000
12,000
30,000
Accrued liabilities
$
8,500 $
Income taxes payable
$ 33,000 $
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.)
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