The Cash Flows from Operating Activities Are Reported by the Direct

Short Answer

The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following:
a. If accrued expenses showed $60,000 on the income statement and payables increased from $10,000 to $19,400 on the balance sheet, what was the amount of cash paid?
b. If insurance expense showed $17,000 on the income statement and Prepaid Insurance increased from $5,000 to $9,000 on the balance sheet, what was the amount of cash paid for insurance?