Question

Cash outflows for McKinney Publishing in 2020 included:________. $347,000 in salaries to authors. $180,000 in fees to contracted editors. $83,000 to obtain copyrights for 15 new books. $1.3 million to purchase a new printing warehouse. $560,000 to upgrade current printing equipment. How much of these cash outflows will McKinney Enterprises expense?

Answer 1

Answer: $527,000

Explanation:

Salaries to authors = $347,000

Fees to contracted editors = $180,000

Copyrights obtained = $83,000

Purchase of a new printing warehouse = 1.3 million

Upgrade of current printing equipment = $560,000

McKinney Enterprises expense will be:

= Salaries to authors + Fees to contracted editors

= $347,000 + $180,000

= $527,000