Exercise 13A-4 Net Cash Provided by Operating Activities [LO13-4] For the just completed year, Hanna Company had net income of $120,000. 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 and cash equivalents $ 59,000 $ 79,000 Accounts receivable $ 160,000 $ 196,000 Inventory $ 444,000 $ 349,000 Prepaid expenses $ 11,200 $ 15,000 Current liabilities: Accounts payable $ 358,000 $ 394,000 Accrued liabilities $ 7,600 $ 11,500 Income taxes payable $ 40,800 $ 33,000 The Accumulated Depreciation account had total credits of $60,000 during the year. Hanna Company did not record any gains or losses during the year. The companys income statement for the year appears below: Sales $ 1,070,000 Cost of goods sold 600,000 Gross margin 470,000 Selling and administrative expenses 310,000 Income before taxes 160,000 Income taxes 40,000 Net income $ 120,000 Required: Using the direct method, convert the company's income statement to a cash basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.)