Seaforce Manufacturing Inc. Income Statement Year Ended December 31, 20X5 Sale $ 340,000 Cost of goods sold $ 250,100 Gross Profit $ 89,900 Operating Expenses $ 55,000 Loss on Sale of equipment $ 2,500 $ 57,500 Profit from Operations $ 32,400 Other expenses Interest Expense $ 3,500 Profit before Income Tax $ 28,900 Income Tax Expense $ 12,000 Profit $ 16,900

Additional Information:

Operating expenses include depreciation expense of $10,000 Accounts Payable related to the purchase of inventory Equipment that cost $12,500 was sold at a loss of $2,500 New equipment was purchased during the year for $8,500 Dividends declared and paid in 20X5 totaled $3,000 Common shares were sold for $12,000 cash Interest payable in 20X5 was $800 greater than interest payable in 20X4 The company uses IFRS and do not treat dividends as part of operations Seaforce Manufacturing Inc. comparative balance sheet at December 31 20X5

20X5 20X4 Cash $ 6,450 $ 4,100 Accounts Receivable $ 72,000 $ 6,500 Inventory $ 110,250 $ 140,000 Prepaid Expenses $ 1,750 $ 1,020 Equipment $ 96,000 $ 100,000 Accumulated Depreciation - equipment $ (50,000 ) $ (42,000 ) Total Assets $ 236,450 $ 209,620 Account Payable $ 16,230 $ 9,900 Interest Payable $ 810 $ 10 Income taxes payable $ 10,800 $ 9,500 Dividends Payable $ 1,800 $ 2,800 Long-term Notes Payable $ 54,500 $ 62,000 Common shares $ 135,000 $ 123,000 Retained Earnings $ 16,310 $ 2,410 Total Liabilities & Shareholders' Equity $ 236,450 $ 209,620

What is the total Cash payments for Income Taxes when the direct method is used to prepare the cash flow statement?

Multiple Choice $10,700 $13,300 $9,900 $12,000 None of the other alternatives are correct