Compute the net cash provided by operating activities

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Exercise - Net Cash Provided by Operating Activities

For the just completed year, Hanna Company had net income of $49,500. 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

$60,000

$80,000

Accounts receivable

$156,000

$186,000

Inventory

$436,000

$361,000

Prepaid expenses

$12,500

$14,500

Current liabilities:

 

 

Accounts payable

$358,000

$386,000

Accrued liabilities

$7,500

$12,000

Income taxes payable

$36,000

$28,000

The Accumulated Depreciation account had total credits of $52,000 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.

Reference no: EM131813917

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