Question: Assume Cramer uses the direct method to prepare the statement of cash flows. Income tax payable was $6,500 at the end of the year, and

Assume Cramer uses the direct method to prepare the statement of cash flows. Income tax payable was $6,500 at the end of the year, and $3,100 at the beginning of the year. Income tax expense for the year totaled $58,900. What amount of cash did the company pay for income taxes during the year?

a. $55,500

b. $62,000

c. $58,900

d. $62,300

Step by Step Solution

★★★★★

3.43 Rating (175 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a 589... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Financial Accounting Questions!

Smither Software Corp. has assembled the following data for the years ending December 31, 2018 and 2017. Requirement 1. Prepare Smithers statement of cash flows using the indirect method to report...

The comparative balance sheets of American-Davis Design Studio, Inc., at June 30, 2018, and 2017, and transaction data for fiscal 2018, are as follows: Transaction data for the year ended June 30,...

Luxe, Inc., reported the following in its financial statements for the year ended May 31, 2018 (in thousands): Requirement 1. Determine the following cash receipts and payments for Luxe during the...

Assume Cramer uses the direct method to prepare the statement of cash flows. Credit sales totaled $780,000 , accounts receivable increased by $30,000 , and accounts payable decreased by $25,000 . How...

Assume Cramer uses the direct method to prepare the statement of cash flows. Income tax payable was $6,500 at the end of the year and $3,100 at the beginning of the year. Income tax expense for the...

In the current year, FwCN Company rold iand for $79,000 cash, purchased a delivery van for $9.5,000 cash, and iswued common stock for $100,000 cash the net cash brovised by activisios is A. $179,000...

Which of the following is not disclosed on the statement of cash flows when prepared under the direct method, either on the face of the statement or in a separate schedule? a. The major classes of...

Fact Pattern: Pimlico Corp. uses the direct method to prepare its statement of cash flows. Pimlico's trial balances at December 31, Year 2 and Year 1, are as follows: December 31 Year 2 Year 1 $...

Hi, Can you help me with these three assignments. Thanks FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition E13-19 Requirements 1. Journalize the transactions. Explanations are not required. 2. How...

E23-3B (Preparation of Operating Activities SectionIndirect Method, Periodic Inventory) The income statement of Guesser Company is shown below. GUESSER COMPANY INCOME STATEMENT FOR THE YEAR ENDED...

During 2004, American Greeting Corporation, a large producer of greetings cards, repurchased some of its outstanding long-term debt. Shortly thereafter the company issued new debt. At the time of the...

Find the number of neutrons generated per unit time in a uranium reactor whose thermal power is P = 100 MW if the average number of neutrons liberated in each nuclear splitting is v = 2.5. Each...

losses to the distributing corporation in a corporate liquidation are disallowed

8. The completion of the Uruguay Round of GATT talks and the establishment of the World Trade Organization have strengthened the world trading system by extending GATT rules to services, increasing...

a. A vacant lot acquired for $100,000 is sold for $350,000 in cash. What is the effect of the sale on the total amount of the sellers (a) assets, (2) liabilities, and (3) stockholders equity...

Each of the following items is shown in the financial statements of ExonMobil Corporation. 1. Accounts payable 2. Cash equivalents 3. Crude oil inventory 4. Equipment 5. Exploration expenses 6....

What technology is used in modern ESS to provide personalized Artificial Intelligence ( AI ) insights to executives? Data Warehousing Virtual Reality ( VR ) Blockchain

In which of the following types of reservoirs is fracking most necessary to drill an economic well? A) Oil Sands B) Shale C) High porosity, high permeability rock D) Rose rock E) Coal bed _________...