QUESTION 8 ABC Company uses the indirect method to prepare its statement of cash flows. Present...

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QUESTION 8 ABC Company uses the indirect method to prepare its statement of cash flows. Present below are selected items from its financial statements. 12/31/20X3 12/31/20X2 Accounts receivable $89,000 $56,000 Prepaid insurance $2,800 $4,600 Wages payable $9,500 $12,000 Interest payable $12,000 $8,900 Sales revenue $860,000 Cost of goods sold $495,000 Wages expense $110,000 Insurance expense $13,200 $19,000 Interest expense Which of the following would be shown in the Operating Activities section related to insurance? A. Cash paid for insurance of $15,000 B. $1,800 would be added to net income OC. Cash paid for insurance of $11,400 OD. $1,800 would be subtracted from net income QUESTION 8 ABC Company uses the indirect method to prepare its statement of cash flows. Present below are selected items from its financial statements. 12/31/20X3 12/31/20X2 Accounts receivable $89,000 $56,000 Prepaid insurance $2,800 $4,600 Wages payable $9,500 $12,000 Interest payable $12,000 $8,900 Sales revenue $860,000 Cost of goods sold $495,000 Wages expense $110,000 Insurance expense $13,200 $19,000 Interest expense Which of the following would be shown in the Operating Activities section related to insurance? A. Cash paid for insurance of $15,000 B. $1,800 would be added to net income OC. Cash paid for insurance of $11,400 OD. $1,800 would be subtracted from net income