Bainbridge Company Uses the Direct Method in Determining Net Cash

question 46

Multiple Choice

Bainbridge Company uses the direct method in determining net cash provided by operating activities. The income statement shows income tax expense $75,000. Income taxes payable were $25,000 at the beginning of the year and $18,000 at the end of the year. Cash payments for income taxes are

• A) $68,000.
• B) $75,000.
• C) $82,000.
• D) $93,000.

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Definitions:

Folvite

A pharmaceutical form of folic acid, used to treat or prevent low blood levels of folate.

Folic Acid Deficiency

A condition caused by inadequate levels of folic acid in the body, leading to various health issues including anemia.

Iron-Deficiency Anemia

A condition resulting from insufficient iron levels, leading to a decrease in the number of healthy red blood cells, causing fatigue and weakness.

Bleeding

The loss of blood from the circulatory system, which can occur internally or externally due to injury or a medical condition.