Danielsen,Inc had salaries payable of $50,000 as of January 1 and $30,000 as of December 31.During the year,Danielsen showed $750,000 in salaries expense on the income statement.Cash outflows for salaries for the year were ________.
A)$730,000
B)$750,000
C)$770,000
D)$800,000

Question

Quizplus · Accepted Answer

The cash outflow for salaries during the year can be calculated as follows:
Salaries Expense on Income Statement - Decrease in Salaries Payable + Increase in Salaries Payable = Cash Outflow
$750,000 - ($30,000 - $50,000) = $770,000

Danielsen,Inc Had Salaries Payable of $50,000 as of January 1