Operating Cash Flows (Direct Method) Calculate the cash flow in each of the following cases: a. Cash paid for advertising: Advertising expense Prepaid advertising, January 1 Prepaid advertising., December 31 $62,000 12,000 5,000 Cash Flow b. Cash paid for income taxes: Income tax expense Income tax payable, January 1 Income tax payable, December 31 $29,000 7.100 5,900 Cash Flow