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A company's Income Tax Payable account decreased from $24 million to $22 million during the year. If its income tax expense was $109 million, what would be shown as cash paid for income taxes under the direct method? a. A cash outflow of $111 million. b. A cash outflow of $22 million. c. A cash outflow of $107 million. d. A cash outflow of $109 million.

A company's Income Tax Payable account decreased from $24 million to $22 million during the year. If its income tax expense was $109 million, what would be shown as cash paid for income taxes under the direct method? a. A cash outflow of $111 million. b. A cash outflow of $22 million. c. A cash outflow of $107 million. d. A cash outflow of $109 million.

Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter6: Statement Of Cash Flows
Section: Chapter Questions
Problem 20E
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A company's Income Tax Payable account decreased from $24 million to $22 million during the year. If its income tax expense was $109 million, what would be shown as cash paid for income taxes under the direct method? a. A cash outflow of $111 million. b. A cash outflow of $22 million. c. A cash outflow of $107 million. d. A cash outflow of $109 million.
Transcribed Image Text:A company's Income Tax Payable account decreased from $24 million to $22 million during the year. If its income tax expense was $109 million, what would be shown as cash paid for income taxes under the direct method? a. A cash outflow of $111 million. b. A cash outflow of $22 million. c. A cash outflow of $107 million. d. A cash outflow of $109 million.
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