22.

Income tax was $311,422 for the year. Income tax payable was $27,570 and $41,617 at the beginning and end of the year. Determine cash payments for income tax reported on the cash flow statement using the direct method.

Select the correct answer.

$311,422

$297,375

$380,609

$325,469

25. A company with working capital of $720,000 and a current ratio of 2.2 pays a $125,000 short-term liability. The amount of working capital immediately after payment is

a. $720,000

b. $845,000

c. $595,000

d. $125,000