For the just completed year, Hanna Company had net income of $95.000. 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 Accrued liabilities Income taxes payable $ 62,000 $ 164,000 $ 423,000 $ 11,800 $ 81,000 $ 196,000 $ 361 000 $ 14,300 $ 354,000 $ 8,000 $ 31,200 $ 386,000 $ 12,800 $ 25,000 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. The company's income statement for the year appears below: Sales Cost of goods sold Gross margin Selling and administrative expenses Income before taxes Income taxes $1,050,000 595,000 455,000 318,000 137 000 420.000 IS 954000 Net nem S Prey 30 31 Direct Method of Determining the Net Cash Flows from Operating Activities Adjustments to a cash basis: $ 0 Adjustments to a cash basis: 0 Selling and administrative expenses Adjustments to a cash basis: 0 Income taxes Adjustments to a cash basisi $ 0