For the just completed year Hanna Company had net income of

For the just completed year, Hanna Company had net income of $66,000. 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 Year / Beginning of Year Current assets:

Cash and cash equivalents $ 65,000 / $ 80,000

Accounts receivable $ 166,000 $ 198,000

Inventory $ 439,000 $ 346,000

Prepaid expenses $ 11,500 $ 14,500

Current liabilities:

Accounts payable $ 364,000 $ 392,000

Accrued liabilities $ 8,000 $ 12,000

Income taxes payable $ 34,000 $ 29,000

The Accumulated Depreciation account had total credits of $56,000 during the year. Hanna Company did not record any gains or losses during the year.

Required: Using the indirect method, determine the net cash provided by operating activities for the year. (List any deduction in cash and cash outflows as negative amounts.)

Solution

Using the indirect method, determine the net cash provided by operating activities for the year.