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

A) $39,000
B) $69,000
C) $9,000
D) $25,000

Question

On the statement of cash flows, the income tax expense adjusted to a cash basis would be:A) $39,000B) $69,000C) $9,000D) $25,000

Bhoomi Batheja · Accepted Answer

Final Answer : C, Explanation :  The income tax expense adjusted to a cash basis would only include actual cash payments for income taxes made during the year. The answer can be found by looking at the cash flow statement and finding the line item for income taxes paid. In this case, the income taxes paid total $9,000, which is the correct answer. The income tax expense on the income statement is not necessarily the same as the amount paid in cash during the year.   Reference: APP13A-Ref8Hayward Corporation had net sales of $610,000 and cost of goods sold of $360,000 for the just completed year.Shown below are the beginning and ending balances for the year of various accounts:   The company prepares its statement of cash flows using the direct method.

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

A) $39,000
B) $69,000
C) $9,000
D) $25,000

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