During the year, Salaries Payable decreased by $12,000. Using the direct method of reporting cash flows from operating activities, if Salaries Expense amounted to $450,000 for the year, the cash paid to employees (including deductions from gross pay) is

Answers

Answer 1

If during the year, Salaries Payable decreased by $12,000. Using the direct method of reporting cash flows from operating activities, if Salaries Expense amounted to $450,000 for the year, the cash paid to employees is $462,000.

What is cash paid?

Cash paid can be defined can be defined as the amount that is payable to an employee by an employer.

Using this formula to find the cash paid to employees

Cash paid to employees = Salaries payable decreased + Salaries Expense

Where:

Salaries payable decreased = $12,000

Salaries expense = $450,000

Let plug in the formula

Cash paid to employees = $450,000 + $12,000

Cash paid to employees = $462,000

Therefore the Cash paid to employees  is the amount of $462,000.

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9514 1404 393

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