Question

g Oriole Company uses the direct method in determining net cash provided by operating activities. The income statement shows income tax expense $85300. Income taxes payable were $34000 at the beginning of the year and $20500 at the end of the year. Cash payments for income taxes are

Answer 1

the cash payment for the income tax is $71,800

Step-by-step explanation:

The computation of the cash payment for the income tax is shown below;

= Income tax expense + decrease in income tax payable

= $85,300 + ($20,500 - $34,000)

= $85,300 + $20,500 - $34,000

= $71,800

Hence, the cash payment for the income tax is $71,800

The same is to be considered