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For the just completed year, Hanna Company had net income of $68,000. Balances in the companys current asset and current liability accounts at the beginning
For the just completed year, Hanna Company had net income of $68,000. 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 | $ | 64,000 | $ | 75,000 |
Accounts receivable | $ | 168,000 | $ | 192,000 |
Inventory | $ | 433,000 | $ | 352,000 |
Prepaid expenses | $ | 11,000 | $ | 13,500 |
Current liabilities: | ||||
Accounts payable | $ | 362,000 | $ | 380,000 |
Accrued liabilities | $ | 9,000 | $ | 12,500 |
Income taxes payable | $ | 34,000 | $ | 28,000 |
The Accumulated Depreciation account had total credits of $40,000 during the year. Hanna Company did not record any gains or losses during the year. |
Required: |
Use the indirect method to determine the net cash provided by (or used in) operating activities for the year. (List any deduction in cash and cash outflows as negative amounts.)
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