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

For the just-completed year, Hanna Company had net income of $65,500. 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 Year Beginning of Year

Current assets:

Cash and cash equivalents $ 62,000 $ 76,000

Accounts receivable $ 168,000 $ 180,000

Inventory $ 442,000 $ 361,000

Prepaid expenses $ 12,000 $ 14,500

Current liabilities:

Accounts payable $ 366,000 $ 382,000

Accrued liabilities $ 8,500 $ 13,000

Income taxes payable $ 33,000 $ 29,000

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:

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.)