Question

Schneider Inc. had salaries payable of $61,600 and $90,000 at the end of 2017 and 2018, respectively. During 2018, Schneider recorded $621,400 in salaries expense in its income statement. Cash outflows for salaries in 2018 were:

Answer 1

Answer:

$593,000

Explanation:

Given data  for Schneider Inc.

Salaries payable at the beginning of 2018 (end of 2017) = $61,600

Salary expense during the year (2018) = $621,400

Salary payable at end of year (2018) = $90,000

Salaries paid = ?

Let the salaries paid = S

Using the formula

Salaries payable at the beginning of 2018 + Salary expense during the year - Salaries paid = Salary payable at end of year

$61,600 + $621,400 - S = $90,000

S = $61,600 + $621,400 - $90,000

S = $593,000

Cash outflows for salaries in 2018 were $593,000.