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:

Implementation Stage

The phase in a project or plan where strategies and ideas are put into action.

Rapid Prototyping

A group of techniques used to quickly fabricate a scale model of a physical part or assembly using three-dimensional computer-aided design (CAD) data.

Detailed Experiments

Rigorous testing and validation processes used to explore hypotheses, assess outcomes, and refine strategies or products based on empirical data.

Implementation Phase

The stage in a project or strategic plan where strategies and plans are put into action to achieve the desired outcomes.