Hockey apparelhockey apparel service reported an increase in...

Hockey ApparelHockey Apparel Service reported an increase in income taxes payable of $1 comma 6501,650 during the year and a decrease in deferred-tax asset of $2 comma 2502,250. Its income tax expense was $5 comma 4505,450. Requirements a. What is cash paid for income taxes? b. What would HockeyHockey report in the operating section of the cash flow statement under the indirect method?

The net income reported on the income statement for the current year was $\$ 210,000$. Depreciation recorded on equipment and a building amounted to $\$ 62,500$ for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: \begin{tabular}{lrr} & End of Year & Beginning of Year \\ \hline Cash & $\$ 56,000$ & $\$ 59,500$ \\ Accounts receivable (net) & 71,000 & 73,400 \\ Inventories & 140,000 & 126,500 \\ Prepaid expenses & 7,800 & 8,400 \\ Accounts payable (merchandise creditors) & 62,600 & 66,400 \\ Salaries payable & 9,000 & 8,250 \end{tabular} a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. b. If the direct method had been used, would the net cash flow from operating activities have been the same? Explain.

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