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5. Panjim recorded an interest expense of $6,000 for 2015. Which one of the following line items would be included in the operating section
5. Panjim recorded an interest expense of $6,000 for 2015. Which one of the following line items would be included in the operating section of the Panjim's 2015 indirect method statement of cash flows? Add increase in interest payable...$1,000 Subtract increase in interest payable...($1,000) Add increase in interest payable...$6,000 Subtract decrease in interest payable...($5,000) PANJIM TRADING COMPANY T-ACCOUNT 2015 Cash Bal 1/1 225.000 Collections from customers Common stock issued 60,000 44,000 Payments to suppliers 20,000 13,000 Purchase of machinery Five-year bank loan Sale of used van 75,000 100,000 Salaries paid 10,000 4,000 Dividends paid 5,000 Interest payment 1,000 Garage rental prepayment Bal 12/31 223,000
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