On the statement of cash flows, the income tax expense adjusted to a cash basis would be:

A) $47,000
B) $39,000
C) $31,000
D) $49,000

Question

On the statement of cash flows, the income tax expense adjusted to a cash basis would be:A) $47,000B) $39,000C) $31,000D) $49,000

Elton DeRouen · Accepted Answer

Final Answer : A, Explanation :    Reference: APP13A-Ref6Last year, Knox Corporation reported on its income statement sales of $375,000 and cost of goods sold of $140,000.During the year, the balance in accounts receivable increased $30,000, the balance in accounts payable decreased $25,000, and the balance in inventory increased $10,000.The company uses the direct method to determine the net cash provided by (used in)operating activities on its statement of cash flows.

On the statement of cash flows, the income tax expense adjusted to a cash basis would be:

A) $47,000
B) $39,000
C) $31,000
D) $49,000

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