(Calculate cash payments made for interest, LO 3) In its August 31, 2016 financial statements, Pitquah Corp. (Pitquah) reported interest payable on August 31, 2015 of

$7,500, and interest payable on August 31, 2016 of $2,500. Pitquah’s income statement reports interest expense of $35,000.

Required:

Calculate the amount of cash Pitquah paid in interest in fiscal 2016.