Prepaid insurance had a balance of $1,000 on the company's December 31,2011 balance sheet.On June 1,2012,the company paid an additional insurance premium of $3,000.Prepaid insurance had a balance of $1,250 on the company's December 31,2012 balance sheet.How much cash paid for insurance will be reported on the company's statement of cash flows for the year ended December 31,2012?
A) $(1,000)
B) $(3,000)
C) $(1,250)
D) $(4,000)
Correct Answer:
Verified
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