Compute the company's cash outlays during the year for payroll-related costs. Assume short-term obligations such as insurance premiums and payroll taxes have been paid.
A) $2,750,000.
B) $3,070,000.
C) $1,930,000.
D) $3,510,000.

Question

Quizplus · Accepted Answer

The cash outlays for payroll-related costs can be calculated by adding up all expenses related to salaries, wages, and benefits. From the income statement, we can see that the total expenses for salaries and wages are $2,500,000, and the total expenses for benefits are $570,000. Adding these two amounts together gives us a total of $3,070,000. Therefore, the answer is B.

Compute the Company's Cash Outlays During the Year for Payroll-Related