The Following Information Relates to Layline Company Using the Direct Method of Reporting Cash Flows from Operating

question 126

Multiple Choice

The following information relates to Layline Company: $\begin{array}{lr}\text { Prepaid Insurance, December 31, } 2013 & \$ 302,000 \\\text { Prepaid Insurance, December 31, } 2014 & 280,000 \\\text { Insurance expense for 2014 } & 1,400,000\end{array}$ Using the direct method of reporting cash flows from operating activities, what was the amount of cash paid for insurance premiums by Layline during 2014?

• A) $1,378,000.
• B) $1,422,000.
• C) $1,680,000.
• D) $1,422,000

---

Definitions:

Textual Presentation

The act or process of presenting text-based information in a structured and coherent manner.

Audio And Visual Clips

Digital media fragments that combine sound and imagery, used primarily for communication, instruction, or entertainment.

Slide Builds

Components in presentations that are revealed incrementally to help explain, emphasize, or clarify information.

Visual Aids

Tools that use visual elements to enhance comprehension, presentation, or interpretation of information.