Expenses reported on the income statement for 20A (the first year of operations), totaled
$60,000, which included depreciation expense of $8,000, and wages payable increased to
$3,000 by the end of 20A. Therefore, the 20A cash outflow for expenses was $71,000.

Question

Quizplus · Accepted Answer

The 20A cash outflow for expenses would be $63,000 ($60,000 in reported expenses + $8,000 in depreciation expense - $3,000 increase in wages payable).

Expenses Reported on the Income Statement for 20A (The First