For the just completed year, Hanna Company had net income of $134,000. 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 Beginning Year of Year Current assets Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Current liabilities: Accounts payable Acered liabilities Income taxes payable $ 57,000 $80,000 $ 158,000 $ 196,000 $ 426,000 $370,000 $ 11,900 $ 14.600 $360,000 $386,000 $ 7,100 $ 13,000 $ 30,200 $ 25,000 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 Selling and administrative expenses Income before taxen Income taxe Net Income $1.060,000 575.000 485.000 308,000 177,000 43,000 $ 134,000 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.) Hanna Company Direct Method of Determining the Net Cash Flows from Operating Activities Adjustments to a cash basis: Adjustments to a cash basis: Selling and administrative expenses Adjustments to a cash basis: Income taxes Adjustments to a cash basis