Westwind Corporation shows income tax expense of $180,000. There has been a $20,000 decrease in federal income taxes payable and a $28,000 increase in state income taxes payable during the year. Using the direct method of reporting cash flows from operating activities, what was Westwind 's cash payment for income taxes?

Question

Quizplus · Accepted Answer

Cash payment for income taxes = Income tax expense + Decrease in federal income taxes payable - Increase in state income taxes payable= $180,000 + $20,000 - $28,000= $172,000

Westwind Corporation Shows Income Tax Expense of $180,000