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Lightning Co.'s balance in their prepaid insurance account $20,000 at Dec 31, Year 2 and $10,000 at Dec 31, Year 1. Insurance expense was $12,000

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Lightning Co.'s balance in their "prepaid insurance account $20,000 at Dec 31, Year 2 and $10,000 at Dec 31, Year 1. Insurance expense was $12,000 for Year 2 and $6,000 for Year 1. How much cash paid for insurance would be reported in Lightning Co's Year 2statement of cash flows prepared using the direct method? O $18,000 O $12,000 $8,000 O $22,000

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