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 for salaries and wages: Cash payments to employees: It represents the amount of cash paid to employees for the salaries or wages expenses. prior Step 1: Calculate the increase or decrease in salaries and wages expense. Increase or decrease in salaries and wages payable } = ( Beginning salaries and wages payable − Ending salaries and wages payable ) = ( $ 8 , 200 − $ 10 , 900 ) = $ 2 , 700 ( Increase ) Step 2: Calculate the amount of cash paid to employees

24th Edition

ISBN: 9781260158625

Author: Wild

Publisher: MCG

See similar textbooks

Concept explainers

Reporting Cash Flows

Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows fro…

Balance Sheet

A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the …

Financial Statements

Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It…

Owner's Capital

Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expect…

Videos

Question

Chapter 16, Problem 4MCQ

To determine

Calculate the amount of cash paid for salaries and wages.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 16, Problem 3MCQ

Chapter 16, Problem 5MCQ

Students have asked these similar questions

Answer with clear data. if you answer with any unclear dara then unhelpful

What was the amount of sales for the month ?

The tax savings from an expense item are $90,000 for a company that spends 30% of its income on taxes. How much does the item cost before tax? (a) $280,000 (b) $300,000

Chapter 16 Solutions

Principles of Financial Accounting.

Ch. 16 - A company uses the indirect method to determine...Ch. 16 - Prob. 2MCQ Ch. 16 - Prob. 3MCQ Ch. 16 - Prob. 4MCQ Ch. 16 - The following information is available for a...Ch. 16 - Prob. 1DQ Ch. 16 - Prob. 2DQ Ch. 16 - Prob. 3DQ Ch. 16 - Prob. 4DQ Ch. 16 - When a statement of cash flows is prepared using...

Ch. 16 - Prob. 6DQ Ch. 16 - Prob. 7DQ Ch. 16 - Prob. 8DQ Ch. 16 - Prob. 9DQ Ch. 16 - If a company reports positive net income for the...Ch. 16 - Prob. 11DQ Ch. 16 - Prob. 12DQ Ch. 16 - Prob. 13DQ Ch. 16 - Prob. 14DQ Ch. 16 - Prob. 15DQ Ch. 16 - Classify the following cash flows as either...Ch. 16 - Statement of cash flows Label the following...Ch. 16 - Prob. 3QS Ch. 16 - Prob. 4QS Ch. 16 - Prob. 5QS Ch. 16 - Prob. 6QS Ch. 16 - Prob. 7QS Ch. 16 - Prob. 8QS Ch. 16 - Prob. 9QS Ch. 16 - The plant assets section of the comparative...Ch. 16 - Prob. 11QS Ch. 16 - Prob. 12QS Ch. 16 - Prob. 13QS Ch. 16 - Prob. 14QS Ch. 16 - Prob. 15QS Ch. 16 - Prob. 16QS Ch. 16 - Prob. 17QS Ch. 16 - Prob. 18QS Ch. 16 - Prob. 19QS Ch. 16 - A company uses a spreadsheet to prepare its...Ch. 16 - Prob. 21QS Ch. 16 - Bioware Co. reports cost of goods sold of 42,000....Ch. 16 - Prob. 23QS Ch. 16 - Prob. 24QS Ch. 16 - Refer to the data in QS 16-7. 1. How much cash is...Ch. 16 - Refer to the data in QS 16-7. 1. How much cash is...Ch. 16 - Prob. 27QS Ch. 16 - Prob. 1E Ch. 16 - Prob. 2E Ch. 16 - Prob. 3E Ch. 16 - Prob. 4E Ch. 16 - Fitz Company reports the following information....Ch. 16 - Prob. 6E Ch. 16 - Prob. 7E Ch. 16 - Prob. 8E Ch. 16 - Use the following information to determine cash...Ch. 16 - For each of the following separate transactions,...Ch. 16 - Prob. 11E Ch. 16 - Use the following information to prepare a...Ch. 16 - Prob. 13E Ch. 16 - Complete the following spreadsheet in preparation...Ch. 16 - Prob. 15E Ch. 16 - Prob. 16E Ch. 16 - Prob. 17E Ch. 16 - Prob. 18E Ch. 16 - Use the following information about Ferron Company...Ch. 16 - Prob. 20E Ch. 16 - Prob. 1AP Ch. 16 - Refer to the information in Problem 16-1A....Ch. 16 - Forten Companys current-year income statement,...Ch. 16 - Prob. 4AP Ch. 16 - Prob. 5AP Ch. 16 - Golden Corp.s current-year income statement,...Ch. 16 - Prob. 7AP Ch. 16 - Prob. 8AP Ch. 16 - Prob. 1BP Ch. 16 - Prob. 2BP Ch. 16 - Gazelle Corporations current-year income...Ch. 16 - Prob. 4BP Ch. 16 - Prob. 5BP Ch. 16 - Prob. 6BP Ch. 16 - Prob. 7BP Ch. 16 - Prob. 8BP Ch. 16 - Prob. 16SP Ch. 16 - Use Apples financial statements in Appendix A to...Ch. 16 - Prob. 2AA Ch. 16 - Prob. 3AA Ch. 16 - Prob. 1BTN Ch. 16 - COMMUNICATING IN PRACTICE Your friend, Diana Wood,...Ch. 16 - Prob. 3BTN Ch. 16 - Prob. 5BTN Ch. 16 - Prob. 6BTN

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
Century 21 Accounting General Journal
Accounting
ISBN:9781337680059
Author:Gilbertson
Publisher:Cengage