Ernie's Electronics reports income tax expense of $270,000. Income taxes payable at the beginning and end of the year are $56,500 and $68,000, respectively.

What is the cash paid for income taxes during the year?

(Income Tax Expense - Decrease/Increase in income taxes payable.

B)

Analyze each of the four transactions Ernies Electronics had with Berts Bargain House from the perspective of Bert's Bargain House. Indicate in which section of the statement of cash flows each of these items would be reported for Bert's Bargain House: operating activities (indirect method), investing activities, financing activities, or a separate noncash activities note.