Columbus Company prepays the rent on various office facilities. The beginning balance in Prepaid Rent was
$9,500, and the ending balance was $7,200. The income statement reports Rent Expense of $45,800.
REQUIRED:
Under the direct method, what amount would appear for cash paid in rent in the Operating Activities section of the statement of cash flows? Show your work.

Question

Quizplus · Accepted Answer

The Answer of Columbus Company prepays the rent on various office facilities. The beginning balance in Prepaid Rent was
$9,500, and the ending balance was $7,200. The income statement reports Rent Expense of $45,800.
REQUIRED:
Under the direct method, what amount would appear for cash paid in rent in the Operating Activities section of the statement of cash flows? Show your work.

Columbus Company Prepays the Rent on Various Office Facilities