A company reported interest expense of $590,000 for the year. Interest payable w

Question

A company reported interest expense of $590,000 for the year. Interest payable was $28,000 and $68,000 at the beginning and the end of the year, respectively. What was the amount of interest paid?

Selected information from Peridot Corporation's accounting records and financial statements for 2016 is as follows ($ in millions):

  

   

In its statement of cash flows, Peridot should report net cash outflows from investing activities of:

  Cash paid to acquire machinery $31       Retired common stock 58       Proceeds from sale of land 94       Gain from the sale of land 46       Investment revenue received 75       Cash paid to acquire office equipment 85    

Explanation / Answer

Peridot should report net cash outflows from investing activities $ 41

Cash paid to acquire machinery $ 31

Cash paid to acquire office equipment 85

Interest revenue received (75)

$ Beginning balance of interest payable 28,000 Add interest expense for the year 590,000 Less ending balance of interest payable (68,000) Interest paid during the year 550,000

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