EXERCISE 14-2 Net Cash Provided by Operating Activities LO14-2 For the just completed year, Hanna Company had net income of 35,000.Balancesinthecompany′scurrentassetandcurrentliabilityaccountsatthebeginningandendoftheyearwereasfollows:December31EndofYearBeginningofYearCurrentassets:Cashandcashequivalents30,000 40,000Accountsreceivable125,000 106,000Inventory213,000 180,000Prepaidexpenses6,000 7,000Currentliabilities:Accountspayable210,000 195,000Accruedliabilities4,000 6,000Incometaxespayable34,000 30,000TheAccumulatedDepreciationaccounthadtotalcreditsof20 , 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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Question Text	EXERCISE 14-2 Net Cash Provided by Operating Activities LO14-2 For the just completed year, Hanna Company had net income of $35, 000. B a l an ces in t h eco m p an y^{'} sc u rre n t a sse t an d c u rre n tl iabi l i t y a cco u n t s a tt h e b e g innin g an d e n d o f t h eye a r w ere a s f o ll o w s : Dece mb er 31 E n d o f Y e a r B e g innin g o f Y e a r C u rre n t a sse t s : C a s han d c a s h e q u i v a l e n t s$ 30,000 $40, 000 A cco u n t srece i v ab l e$ 125,000 $106, 000 I n v e n t ory$ 213,000 $180, 000 P re p ai d e x p e n ses$ 6,000 $7, 000 C u rre n tl iabi l i t i es : A cco u n t s p a y ab l e$ 210,000 $195, 000 A ccr u e d l iabi l i t i es$ 4,000 $6, 000 I n co m e t a x es p a y ab l e$ 34,000 $30, 000 T h e A cc u m u l a t e d De p rec ia t i o na cco u n t ha d t o t a l cre d i t so f$ 20 , 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.
Topic	All Topics
Subject	Accounting
Class	Grade 10

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