Calculation for Interest Paid: Step 1: Gather the Necessary Numbers from the Income Statement and Balance Sheet Interest Expense for the year 2019: $12,000 Beginning Interest Payable (Cr. Balance as of 12/31/18): $600 Ending Interest Payable (Cr. Balance as of 12/31/19): $2,300 Step 2: Calculate Interest Paid To find out how much interest was actually paid during the year, we adjust the interest expense by the change in the interest payable balance. The formula is: Interest Paid=Interest Expense+(Beginning Interest Payable−Ending Interest Payable)Interest Paid=Interest Expense+(Beginning Interest Payable−Ending Interest Payable) Plugging in the numbers: Interest Paid=$12,000+($600−$2,300) Interest Paid=$12,000+($600−$2,300) Interest Paid=$12,000−$1,700 Interest Paid=$12,000−$1,700 Interest Paid=$10,300 Explanation: So, the interest paid by Staggs in 2019 is $10,300. Calculation for Income Taxes Paid: Step 1: Gather the Necessary Numbers from the Income Statement and Balance Sheet Income Tax Expense for the year 2019: $35,000 Beginning Income Taxes Payable (Cr. Balance as of 12/31/18): $5,000 Ending Income Taxes Payable (Cr. Balance as of 12/31/19): $3,000 Step 2: Calculate Income Taxes Paid To find out how much income taxes were actually paid during the year, we adjust the income tax expense by the change in the income taxes payable balance. The formula is: Income Taxes Paid=Income Tax Expense+(Beginning Income Taxes Payable−Ending Income Taxes Payable) Income Taxes Paid=Income Tax Expense+(Beginning Income Taxes Payable−Ending Income Taxes Payable) Plugging in the numbers: Income Taxes Paid=$35,000+($5,000−$3,000) Income Taxes Paid=$35,000+($5,000−$3,000) Income Taxes Paid=$35,000+$2,000 Income Taxes Paid=$35,000+$2,000 Income Taxes Paid=$37,000 Income Taxes Paid=$37,000 Explanation: So, the income taxes paid by Staggs in 2019 is $37,000. Final Answer: The final answers for the amounts paid by Staggs Company in 2019 are: Interest paid: $10,300 Income taxes paid: $37,000

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