Cash Flow and Income Taxes
Duval Motors reported the following amounts related to income taxes on its 2008 income statement.
|
Income tax benefit from NOL carryback |
$15,000 |
|
Income tax benefit from NOL carry forward |
31,000 |
Duval also reported the following on its December 31, 2007 and 2008, balance sheets.
|
2008 |
2007 |
|
|
Deferred tax asset—NOL carry forward |
$31,000 |
$ 0 |
|
Income tax refund receivable |
15,000 |
5,000 |
1. If Duval uses the indirect method of reporting cash flows, what information concerning income taxes would Duval include in its statement of cash flows and related disclosure?
2. If Duval uses the direct method of reporting cash flows, what information concerning income taxes would Duval include in its statement of cash flows and related disclosure?