Reference no: EM132768718
Question - The following Income Statement and account balance changes apply to questions 7-10:
Income Statement for the year:
Sales $900,000
Cost of Goods Sold 430,000
Gross Profit $ 470,000
Operating Expenses 250,000
Net Income before Taxes $220,000
Taxes 35,000
Net Income $ 185,000
Account Balance Changes during the year:
Inventory increase? $78,000
Accounts Payable for inventory increase? $24,000
Accounts Receivable increase $63,000
Depreciation increase $74,000
Prepaid expenses decrease $3,000
Accrued liabilities (e.g., Wages Payable) decrease $14,000
Taxes Payable decrease $10,000
Required - What was the amount of cash payments for taxes this year, using the direct method?
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What was the amount of cash payments for taxes
: Account Balance Changes during the year: Depreciation increase $74,000. What was the amount of cash payments for taxes
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