The cash flows from operating activities are reported by the direct method on the statement of cash flows.Determine the following:
a.If accrued expenses showed $50,000 on the income statement and payables increased from $15,000 to $18,500 on the balance sheet,what was the amount of cash paid?
b.If insurance expense showed $10,000 on the income statement and Prepaid Insurance increased from $10,000 to $12,000 on the balance sheet,what was the amount of cash paid for insurance?

Question

Quizplus · Accepted Answer

The Answer of The cash flows from operating activities are reported by the direct method on the statement of cash flows.Determine the following:
a.If accrued expenses showed $50,000 on the income statement and payables increased from $15,000 to $18,500 on the balance sheet,what was the amount of cash paid?
b.If insurance expense showed $10,000 on the income statement and Prepaid Insurance increased from $10,000 to $12,000 on the balance sheet,what was the amount of cash paid for insurance?

The Cash Flows from Operating Activities Are Reported by the Direct