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Exercise 12-2 Net Cash Provided by Operating Activities [LO12-2] For the just completed year, Hanna Company had net income of $89,000. Balances in the companys

Exercise 12-2 Net Cash Provided by Operating Activities [LO12-2]

For the just completed year, Hanna Company had net income of $89,000. Balances in the companys 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 $ 63,000 $ 77,000
Accounts receivable $ 162,000 $ 184,000
Inventory $ 445,000 $ 346,000
Prepaid expenses $ 11,500 $ 13,500
Current liabilities:
Accounts payable $ 358,000 $ 386,000
Accrued liabilities $ 8,500 $ 11,500
Income taxes payable $ 32,000 $ 28,000

The Accumulated Depreciation account had total credits of $50,000 during the year. Hanna Company did not record any gains or losses during the year.

Required:

Use the indirect method to determine the net cash provided by (or used in) operating activities for the year. (List any deduction in cash and cash outflows as negative amounts.)

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