Use the following information to calculate cash paid for wages and salaries: Mul

Question

Use the following information to calculate cash paid for wages and salaries:

Multiple Choice

$182,100.

$179,900.

$170,100.Stormer Company reports the following amounts on its statement of cash flow: Net cash provided by operating activities was $34,000; net cash used in investing activities was $12,400 and net cash used in financing activities was $15,600. If the beginning cash balance is $6,200, what is the ending cash balance?

$175,000.Stormer Company reports the following amounts on its statement of cash flow: Net cash provided by operating activities was $34,000; net cash used in investing activities was $12,400 and net cash used in financing activities was $15,600. If the beginning cash balance is $6,200, what is the ending cash balance?

$163,000.

Salaries expense $ 175,000 Salaries payable, January 1 7,100 Salaries payable, December 31 12,000

Explanation / Answer

Solution 1:

Cash paid for salaries and wages = Salary expense + Opening salary payable - Closing salary payable

= $175,000 + $7,100 - $12,000 = $170,100

Solution 2:

Total cash flow from all activities = $34,000 - $12,400 - $15,600 = $6,000

Ending cash balance = Beginning cash balnce + cash flow form all activities = $6,200 + $6,000 = $12,200

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