Question: The income statement for Sharp, Inc., for the month of May showed insurance expense of $250. The beginning and ending balance sheets for the month

The income statement for Sharp, Inc., for the month of May showed insurance expense of $250. The beginning and ending balance sheets for the month showed an increase of $50 in prepaid insurance. There were no payables related to insurance on the balance sheet. What adjustment to net income, related to this information, would be shown in the operating section of the statement of cash flows prepared using the indirect method? How much cash was paid for insurance during the month?

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