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 $81,980 $ 164,000 $ 196, eee $ 423.000 $361, een $ 11,800 $ 14,30 $ 354,000 $ 8,900 $ 31,200 $ 386,000 $ 12,800 $ 25, gee 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 sola Gross margin Selling and administrative expenses Income before taxes Income taxes $1,950,000 595,000 455,000 318,900 137,000 42,000 O AKO 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 Net income $1,050,000 595,000 455,000 318,000 137,000 42,000 $ 95,000 Direct Method of Determining the Net Cash Flows from Operating Activities 3 Adjustments to a cash basis: Adjustments to a cash basis: Book Hint Selling and administrative expenses Adjustments to a cash basis: Income taxes Adjustments to a cash basis