Question: 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

 Flax Corp. uses the direct method to prepare its statement 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 $ 35,000 $ 32,000 33,00030,000 31,000 47,000 Property, plant, & equipment 100,000 95,000 4,500 5,000 250,000 380,000 141,500 172,000 Year 6 Year 5 Allowance for uncollectible accounts$ 1,300 $ 1,100 16,500 5,000 25,00017,500 21,00027,100 4,600 45,000 20,000 50,00040,000 9,1007,500 44,70064,600 538,800 778,700 $756,700 $976,100 Debits Cash Accounts receivable Inventory Accumulated depreciation Trade accounts payable Income taxes payable Deferred income taxes 8% callable bonds payable Common stock Additional paid-in capital Retained earnings Sales 5,300 Unamortized bond discount Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense 137,000 151,300 4,3002,600 20,40061,200 $756,700 $976,100 Flax allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses, which include the provision for uncollectible accounts . Flax purchased $5,000 in equipment during Year 6 . What amount should Flax report in its statement of cash flows for the year ended December 31, Year 6, for cash paid for income taxes? A. $19,700 B. $20,400 C. $15,000 D. $25,800

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