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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.
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