120.Brice Corporation reported the following information:
2016 Income Statement:
Cost of goods sold 6,400,000
Operating expenses (includes $200,000 depreciation expense)1,250,000
Income tax expense (30% rate) 165,000
Income taxes payable25,00040,000
Unearned sales revenue100,000200,000
Compute Brice's cash paid for income taxes in 2016.
121.Use the following information to prepare a statement of cash flows (direct method) for Ames Corporation for the year ended December 31, 2017.
Cash and cash equivalent balances:
Cash paid for purchase of treasury stock 50,000
Accepted note receivable in exchange for a computer that had been used in business operations10,000
Depreciation expense 15,000
Cash received from customers200,000
Cash paid for operating expenses 75,000
Cash paid for merchandise130,000
Cash received from dividends 2,000
Cash paid for dividends 5,000
Cash paid for office building 75,000
Cash borrowed on a 6-month note payable 40,000
Cash received from issuance of bonds payable 90,000
Cash paid for bond interest expense 5,000
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