End of Year Current assets: Cash and cash equivalents $ 30,000 December 31 Beginning of Year $ 40,000 Accounts receivable $ 125,000 $ 106,000 Inventory Prepaid expenses Current liabilities: Accounts payable Accrued liabilities Income taxes payable $ 213,000 $ 6,000 $ 210,000 $ 4,000 $ 34,000 $ 180,000 $ 7,000 $ 195,000 $ 6,000 $ 30,000 The Accumulated Depreciation account had total credits of $20,000 during losses during the year. Net income Hanna Company Statement of Cash Flows-Indirect Method (partial) Adjustments to convert net income to a cash basis Depreciation Increase in accounts receivable Decrease in inventory Decrease in inventory Decrease in accounts payable Decrease in accounts payable Decrease in accrued liabilities Net cash provided by operating activities 69 $ 84 X B 0 841 Asset and Contra-Asset Accounts Cash Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation D-Decrease; I- Increase. Liabilities and Stockholders' Equity Accounts $ 35 I $40 $87 $ 150 1 $ 80 0 $54 T $50 Accounts payable $ 110 I Accrued liabilities Income taxes payable Bonds payable Common stock $185 1 Retained earnings $ 60 I $ 70 D $91 $6 D Long-term investments that cost the company $6 were sold during the year for $16 and land that cost $15 was sold for $9. In addition, the company declared and paid $30 in cash dividends during the year. Besides the sale of land, no other sales or retirements of plant and equipment took place during the year. Pavolik did not retire any bonds during the year or issue any new common stock. The company's income statement for the year follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Loss on sale of land $700 400 300 184 116 $ (6) 10 120 36 5 84 Gain on sale of investments Income before taxes Income taxes Net income D The company's beginning cash balance was $90 and its ending balance was $85. Operating activities. Net cash provided by operating activities Investing activities: Purchase of common stock Additions to long-term investments Decrease in prepaid expenses Increase in accounts payable Net cash provided by investing activities Financing activities Gain on sale of long-term investments Decrease in accounts receivable Depreciation Decrease in prepaid expenses Net cash provided by financing activities Net decrease in cash and cash equivalents Beginning cash and cash equivalents Ending cash and cash equivalents Net income Pavolik Company Statement of Cash Flows (partial) Adjustments to convert net income to a cash basis: Decrease in accounts payable Depreciation Additions to property, plant & equipment Issuance of bonds payable Increase in accounts payable Decrease in accrued liabilities Increase in accounts payable Additions to property, plant & equipment Depreciation Issuance of bonds payable Net cash provided by operating activities S 124. 0 $ 124 For the year just completed, 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: t nces Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Current Liabilities: Accounts payable Accrued liabilities Income taxes payable December 31 End of Year $ 30,000 $125,000 $213,000 $ 6,000 $210,000 $ 4,000 $ 34,000 Beginning of Year $ 40,000 $106,000 $ 180,000 $ 7,000 $ 195,000 $ 6,000 $ 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 outflows as negative amounts.) Required: Using the indirect method, determine the net cash provided by operating activities for the year. (List any deduction in cash outflows as negative amounts.) Hanna Company Statement of Cash Flows-Indirect Method (partial) Net income $ 84 Adjustments to convert net income to a cash basis: Depreciation Increase in accounts receivable Decrease in inventory Decrease in inventory Decrease in accounts payable Decrease in accounts payable Decrease in accrued liabilities 0 Net cash provided by operating activities $ 84