Calculate the cash flow for each of the following cases.

a. Cash paid for advertising	Answer
Advertising expense	$31,000
Prepaid advertising, beg. of year	5,500
Prepaid advertising, end of year	7,500
b. Cash paid for income taxes:	Answer
Income tax expense	$14,500
Income tax payable, beg. of year	3,550
Income tax payable, end of year	2,450
c. Cash paid for merchandise purchased:	Answer
Cost of goods sold	$90,000
Inventory, beg. year	15,000
Inventory, end of year	12,500
Accounts payable, beg. of year	5,000
Accounts payable, end of year	6,000