Conroy Company had sales of $50,000,increase in accounts payable of $4,000,decrease in accounts receivable of $3,000,tax expense of $5,000,and an increase in taxes payable of $1,000.What was the cash outflow for taxes?
A)$54,000
B)$4,000
C)$6,000
D)$53,000
E)$45,000

Question

Quizplus · Accepted Answer

The cash outflow for taxes is calculated by taking the tax expense and adjusting for changes in taxes payable. The tax expense is $5,000, and since taxes payable increased by $1,000, the cash outflow for taxes is $5,000 - $1,000 = $4,000.

Conroy Company Had Sales of $50,000,increase in Accounts Payable of $4,000,decrease