The Following Selected Account Balances Appeared on the Financial Statements

question 83

Multiple Choice

The following selected account balances appeared on the financial statements of the Washington Company. Use these balances to answer the questions that follow.
$\begin{array}{lr}\text { Accounts receivable, Jan. } 1 & \$ 13,000 \\\text { Accounts receivable, Dec. } 31 & 9,000 \\\text { Accounts payable, Jan. 1 } & 4,000 \\\text { Accounts payable, Dec. } 31 & 7,000 \\\text { Inventory, Jan. 1 } & 10,000 \\\text { Inventory, Dec. } 31 & 15,000 \\\text { Sales } & 56,000 \\\text { Cost of goods sold } & 31,000\end{array}$ The Washington Company uses the direct method to calculate net cash flow from operating activities. Assume that all accounts payable are owed to merchandise suppliers.
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-Income tax expense was $175,000 for the year. Income tax payable was $30,000 and $40,000 at the beginning and end of the year, respectively. Cash payments for income tax reported on the statement of cash flows using the direct method is

• A) $175,000
• B) $165,000
• C) $205,000
• D) $215,000

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Definitions:

Lobules

Small, defined sections or subdivisions in an organ or gland, often referenced in the context of the liver or breast tissues.

Central Venous Structure

Refers to the major veins located near the heart that collect blood from the body and transport it back to the heart for reoxygenation.

Taenia Coli

Bands of longitudinal muscle fibers on the colon's surface, contributing to its segmentation and movement of contents.

Haustra

The sacculations or pouches formed by the folding of the colon's wall, allowing expansion and elongation for the process of digestion.