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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Definitions:

Underground Stem

Plant structures that grow below the soil surface, serving as storage organs and helping in asexual reproduction; examples include rhizomes and tubers.

Detachable Small Plants

Plants that can naturally or artificially separate from the parent plant to propagate asexually and form new individual plants.

Parent Plant

The original plant from which cuttings, seeds, or other reproductive material is taken for the purpose of propagation.

Enlarged Underground Stem

A specialized plant structure, such as a tuber or rhizome, that stores nutrients and helps in vegetative reproduction.