Ludwig Company's prepaid rent was $9,000 at December 31, 2017, and $13,000 at December 31, 2018. Ludwig reported rent expense of $19,000 on the 2018 income statement. What amount would be reported in the statement of cash flows as rent paid using the direct method?

Question

Quizplus · Accepted Answer

Ending balance, Prepaid rent$~~~~~~~~~~~~~~~~~~~~~~~\$ 13,000$
Plus Rent expense$~~~~~~~~~~~~~~~~~~~~~~~19,000$
Minus Beginning balance, Prepaid rent$~~~~~~~~~~~~~~~~~~~~~~~\underline{(9,000)}$
$ = $ Cash paid for rent$~~~~~~~~~~~~~~~~~~~~~~~\underline{\$ 23,000}$ Rent experse$~~~~~~~~~~~~~19,000$ 
Prepaid rent$~~~~~~~~~~~~~4,000$
Cash$~~~~~~~~~~~~~\colorbox{white}{23,000}$

Ludwig Company's Prepaid Rent Was $9,000 at December 31, 2017