Pickering Company's Prepaid Insurance Was $8,000 at December 31, 2017

Multiple Choice

Pickering Company's prepaid insurance was $8,000 at December 31, 2017, and $10,000 at December 31, 2018. Pickering reported insurance expense of $15,000 on the 2018 income statement. What amount would be reported in the statement of cash flows as insurance paid using the direct method?

A) $13,000.
B) $17,000.
C) $15,000.
D) $23,000.