Salary expense on the income statement was $264,780 for the year ended December 31,2017.The salary payable account decreased $24,370 during the same time period.The amount of cash payments to employees that should be reported on the direct method cash flow statement for the year ended December 31,2017,is:

Question

Quizplus · Accepted Answer

The cash payments to employees can be calculated by adding the decrease in salary payable to the salary expense. Thus, $264,780 (salary expense) + $24,370 (decrease in salary payable) = $289,150.

Salary Expense on the Income Statement Was $264,780 for the Year