Marked out of 10.00 Question 12 Answer saved Operating Cash Flows (Direct Method) Calculate the cash flow for each of the following a. Cash paid for advertising Advertising expense $155,000 Prepaid advertising, beg. of year 27,500 Prepaid advertising, end of year 37,500 b. Cash paid for income taxes: 0 Income tax expense $72,500 Income tax payable, beg. of year 17,750 Income tax payable, end of year 12,250 c. Cash paid for merchandise purchased: $ O Cost of goods sold $450,000 Inventory, beg. year 75,000 Inventory, end of year 62,500 Accounts payable, beg. of year 25,000 Accounts payable, end of year 30,000