Exercise 14A-4 Net Cash Provided by Operating Activities [LO14-4]

For the just completed year, Hanna Company had net income of $151,000. Balanoes in the company's current asset and current liability accounts at the beginning and end of the year were as follows December 31 d Beginning of Year of Year Currentassets: Accounts receiva ble Inventory Prepaid expenses 5 62,000 $ 78,000 5 168,000 180,000 5 435,000 343,000 5 12,000 $ 13,700 Current liabilities: 5 380,000 388,000 5 8200 $ 11,100 Income taxes payable 35,800 28,000 Accounts payable Accrued liabilities The Accumulated Depreciation account had total credits of $54,000 during the year. Hanna Company did not record any gains or losses during the year. The company's income statement for the year appears below Sales Cost of goods sold Gross margin $1,070,000 585,000 505,000 312,000 Selling and administrative expenses 193,000 42,000 Income before taxes Income tawes Netincome 5 151,000