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 O c. $58,900 OD. $62,300

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

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 Accounting Questions!

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...

Assume Sheehan uses the direct method to prepare the statement of cash flows. Income tax payable was exist4,000 at the end of the year and exist3,000 at the beginning. Income tax expense for the year...

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...

Flax Corp. uses the direct method to prepare its statement of cash flows. Flax's trial balances at December 31, Year 6 and Year 5, are as follows December 31 December 31 Credits Year 6 Year 5 $...

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...

The approximate answers to Prob. 7.11 are u 1.44 m/s and 0.0036 Pa at x = 50 cm and y = 5 mm. [Do not reveal this to your friends who are working on Prob. 7.11.] Repeat that problem by using the...

Find the thickness of aluminum layer which reduces by half the intensity of a narrow monochromatic X-ray beam if the corresponding mass absorption coefficient is /p = 0.32 cm2/g.

KL Corporation reports accounting income of $ 2 7 0 , 0 0 0 in each of the years 2 0 2 3 , 2 0 2 4 , and 2 0 2 5 and has multiple differences between accounting income and taxable income. The company...

9. (15 points) A company is considering a new project that requires an investment of \$5 million. The project is expected to generate cash flows of $2 million in year 1,$3 million in year 2, and $4...

(Appendices) Copy the ingredients from the labels of the following products: (a) deodorant, (b) liquid cleaning product, (c) bug spray, and (d) breakfast cereal. Do any of the labels carry warnings?...

(Appendices) ADJUSTING ENTRIES AND PREPARATION OF FINANCIAL STATEMENTS. Sacramento Stores unadjusted trial balance as of December 31, 19x2, appears below: The following information is also available...

(Appendices) PURCHASES RECORDED NET. Clean Wheels Car Wash purchased $54,200 (list price) of soap for its car-washing machines. The seller offered credit terms of 2/10, n/20. Clean Wheels records...