Explanation Statement of cash flows : Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities. Direct method: The direct method uses the cash basis of accounting for the preparation of the statement of cash flows. It takes into account those revenues and expenses for which cash is either received or paid. ABC Company Statement of Cash Flows- Direct Method (Partial) For the year ended XXX Details Amount ($) Amount ($) Cash flows from operating activities: Cash receipt from customer xxx Less : Cash payments: To supplier xxx For operating expenses xxx For employee salaries xxx For income tax expenses xxx (xxx) Net cash provided from or used by operating activities xxx Table (1) The amount of cash paid to employees: Cash payments to employees: It represents the amount of cash paid to employees for the salaries or wages expenses. Step 1: Calculate the increase or decrease in wages expense. Increase or decrease in wages payable = ( Beginning wages payable − Ending wages payable ) = ( $ 3 , 900 − $ 2 , 800 ) = $ 1 , 100 ( Decrease ) Step 2: Calculate the amount of cash paid to employees

Financial Accounting for Undergr. -Text Only (Instructor's)

3rd Edition

ISBN: 9781618531629

Author: WALLACE

Publisher: Cambridge Business Publishers

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Calculate the amount of cash paid to employees.

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Elba Industries produces a single product: solar-powered lanterns for outdoor use. The budget going into the current year anticipated a selling price of $72 per unit. Due to market competition, the company had to reduce the selling price by 12% during the year. Budgeted variable costs per unit are $45, and budgeted total fixed costs are $180,000 for the year. The anticipated sales volume for the year was 15,000 units. Actual sales volume was 6% lower than budget. What was the sales price variance for the year?

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Financial Accounting for Undergr. -Text Only (Instructor's)

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Ch. 12 - Prob. 11SSQ Ch. 12 - Prob. 12SSQ Ch. 12 - Prob. 1Q Ch. 12 - Prob. 2Q Ch. 12 - Prob. 3Q Ch. 12 - Prob. 4Q Ch. 12 - Prob. 5Q Ch. 12 - Prob. 6Q Ch. 12 - Prob. 7Q Ch. 12 - Prob. 8Q Ch. 12 - Prob. 9Q Ch. 12 - Prob. 10Q Ch. 12 - Prob. 11Q Ch. 12 - Prob. 12Q Ch. 12 - Prob. 13Q Ch. 12 - Prob. 14Q Ch. 12 - Prob. 15Q Ch. 12 - Prob. 16Q Ch. 12 - Prob. 17Q Ch. 12 - Prob. 18Q Ch. 12 - Prob. 1SE Ch. 12 - Prob. 2SE Ch. 12 - Prob. 3SE Ch. 12 - Prob. 4SE Ch. 12 - Prob. 5SE Ch. 12 - Prob. 6SE Ch. 12 - Prob. 7SE Ch. 12 - Prob. 8SE Ch. 12 - Prob. 9SE Ch. 12 - Prob. 10SE Ch. 12 - Prob. 1AE Ch. 12 - Prob. 2AE Ch. 12 - Prob. 3AE Ch. 12 - Prob. 4AE Ch. 12 - Prob. 5AE Ch. 12 - Prob. 6AE Ch. 12 - Prob. 7AE Ch. 12 - Prob. 8AE Ch. 12 - Prob. 9AE Ch. 12 - Prob. 10AE Ch. 12 - Prob. 11AE Ch. 12 - Prob. 1BE Ch. 12 - Prob. 2BE Ch. 12 - Prob. 3BE Ch. 12 - Prob. 4BE Ch. 12 - Prob. 5BE Ch. 12 - Prob. 6BE Ch. 12 - Prob. 7BE Ch. 12 - Prob. 8BE Ch. 12 - Prob. 9BE Ch. 12 - Prob. 10BE Ch. 12 - Prob. 11BE Ch. 12 - Prob. 1AP Ch. 12 - Prob. 2AP Ch. 12 - Prob. 3AP Ch. 12 - Prob. 4AP Ch. 12 - Prob. 5AP Ch. 12 - Prob. 6AP Ch. 12 - Prob. 7AP Ch. 12 - Prob. 8AP Ch. 12 - Prob. 9AP Ch. 12 - Prob. 1BP Ch. 12 - Prob. 2BP Ch. 12 - Prob. 3BP Ch. 12 - Prob. 4BP Ch. 12 - Prob. 5BP Ch. 12 - Prob. 6BP Ch. 12 - Prob. 7BP Ch. 12 - Prob. 8BP Ch. 12 - Prob. 9BP Ch. 12 - Prob. 12SP Ch. 12 - Prob. 1EYK Ch. 12 - Prob. 2EYK Ch. 12 - Prob. 3EYK Ch. 12 - Prob. 4EYK Ch. 12 - Prob. 5EYK Ch. 12 - Prob. 6EYK Ch. 12 - Prob. 7EYK Ch. 12 - Prob. 8EYK Ch. 12 - Prob. 9EYK Ch. 12 - Prob. 10EYK Ch. 12 - Prob. 11EYK

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