Answer:
Hanna Company's Net cash flow from operating activities is $35,000
Explanation:
Net Income for the year $101,500
Adjustment of Non Cash Expenses:
Depreciation $54,000
Decrease in Prepaid Expenses $1,500
Decrease in Accrued Liabilities $(3,000)
Increase in Tax Payable $9,000
Operating profit before working capital changes $163,000
Working Capital Changes:
Increase in Inventory $(102,000)
Decrease in Accounts Receivables $18,000
Decrease in Accounts Payable $(44,000)
Net cash from operating activities $35,000
Please note that figures in brackets represent Cash Outflows (negative values)
