The following information relates to Layline Company: Using the direct method of reporting cash flows from operating activities, what was the amount of cash paid for insurance premiums by Layline during 2017?
A)$1,578,000.
B)$1,622,000
C)$1,880,000.
D)$1,622,000.

Question

The following information relates to Layline Company:  Using the direct method of reporting cash flows from operating activities, what was the amount of cash paid for insurance premiums by Layline during 2017?
A)$1,578,000. 
B)$1,622,000 
C)$1,880,000. 
D)$1,622,000.

Quizplus · Accepted Answer

To calculate the amount of cash paid for insurance premiums, we need to look at the cash flows from operating activities section of the statement of cash flows. Specifically, we need to look for any line items related to insurance premiums paid. According to the provided information, there is only one relevant line item: Insurance premiums paid - $1,578,000. Therefore, the answer is A) $1,578,000.

The Following Information Relates to Layline Company: Using the Direct