Pickering Company's prepaid insurance was $8,000 at December 31, 2017, and $10,000 at December 31, 2018. Pickering reported insurance expense of $15,000 on the 2018 income statement. What amount would be reported in the statement of cash flows as insurance paid using the direct method?

a. $13,000.

b. $17,000.

c. $15,000.

d. $23,000.

In its 2018 income statement, WME reported $460,000 for the cost of goods sold. WME paid inventory suppliers $370,000 in 2018, and its inventory balance decreased by $35,000 during the year. In its reconciliation schedule, WME should:

a. Show a $55,000 positive adjustment to net income under the indirect method for the increase in accounts payable.

b. Show a $55,000 positive adjustment to net income under the indirect method for the decrease in accounts payable.

c. Show a $55,000 negative adjustment to net income under the indirect method for the increase in accounts payable.

d. Show a $55,000 negative adjustment to net income under the indirect method for the decrease in accounts payable.

When preparing a statement of cash flows using the direct method, accrual of payroll expense is:

a. Reported as an operating activity.

b. Reported as an investing activity.

c. Reported as a financing activity.

d. None of these answer choices is correct.

A firm reported ($ in millions) net cash inflows (outflows) as follows: operating $75, investing ($200), and financing $350. The beginning cash balance was $250. What was the ending cash balance?

a. $875.

b. $ 25.

c. $475.

d. $125.