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 $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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Cash Flow Statements

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