Exercise 13-2 (Algo) Net Cash Provided by Operating Activities [LO13-2]

For the year just completed, Hanna Company had net income of $83,500. 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 and cash equivalents	$ 64,000	$ 76,000
Accounts receivable	$ 152,000	$ 186,000
Inventory	$ 451,000	$ 349,000
Prepaid expenses	$ 12,500	$ 14,500
Current liabilities:
Accounts payable	$ 364,000	$ 388,000
Accrued liabilities	$ 7,500	$ 12,000
Income taxes payable	$ 33,000	$ 28,000

The Accumulated Depreciation account had total credits of $44,000 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.