Spa Company Uses the Direct Method in Determining Net Cash

question 114

Multiple Choice

Spa Company uses the direct method in determining net cash provided by operating activities. The income statement shows income tax expense $85000. Income taxes payable were $35000 at the beginning of the year and $20000 at the end of the year. Cash payments for income taxes are

• A) $70000.
• B) $85000.
• C) $100000.
• D) $140000.

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