Assume Cramer uses the direct method to prepare the statement of cash flows. Incometax payable was $6,500 at the end of the year, and $3,100 at the beginning of the year. Incometax expense for the year totaled $58,900. What amount of cash did the company pay for incometaxes during the year?a. $55,500b. $62,000c. $58,900d. $62,300
Assume Cramer uses the direct method to prepare the statement of cash flows. Incometax payable was $6,500 at the end of the year, and $3,100 at the beginning of the year. Incometax expense for the year totaled $58,900. What amount of cash did the company pay for incometaxes during the year?a. $55,500b. $62,000c. $58,900d. $62,300
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Assume Cramer uses the direct method to prepare the statement of
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
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