Bainbridge Company Uses the Direct Method in Determining Net Cash

question 77

Multiple Choice

Bainbridge Company uses the direct method in determining net cash provided by operating activities. The income statement shows income tax expense $70,000. 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) $63,000.
• B) $70,000.
• C) $77,000.
• D) $88,000.

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Definitions:

Production Management

The planning, coordination, and control of industrial processes to ensure that goods are produced efficiently, on time, and within budget.

Specialized Knowledge

Expertise or proficiency in a specific field or area, often acquired through education or extensive experience.

Organizational Structure

The arrangement of jobs, processes, reporting hierarchies, and communication pathways that connect various components of an organization.

Shared Leadership

An organizational leadership model where leadership roles are distributed among team members, encouraging collaboration and shared responsibility.