Cash flows as insurance paid using the direct method

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Reference no: EM131291959

Pickering Company's prepaid insurance was $8,500 at December 31, 2015, and $12,500 at December 31, 2016. Pickering reported insurance expense of $18,500 on the 2016 income statement. What amount would be reported in the statement of cash flows as insurance paid using the direct method?

$18,500.

$22,500.

$27,000.

$14,500.

Reference no: EM131291959

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