Use the following information to calculate cash paid for wages and salaries:
A)$157,400
B)$163,800
C)$168,000
D)$172,200
E)$174,400

Question

Use the following information to calculate cash paid for wages and salaries: 
A)$157,400 
B)$163,800 
C)$168,000 
D)$172,200 
E)$174,400

Quizplus · Accepted Answer

To calculate cash paid for wages and salaries, we can look at the Total Operating Expenses line item on the statement of cash flows and subtract the change in accounts payable for wages and salaries. 
Total Operating Expenses = $825,200 
Change in Accounts Payable for Wages and Salaries = $-6,400 (note the negative sign indicates a decrease in accounts payable) 
Cash Paid for Wages and Salaries = Total Operating Expenses - Change in Accounts Payable for Wages and Salaries 
Cash Paid for Wages and Salaries = $825,200 - (-$6,400) = $831,600 
Therefore, the closest answer choice to $831,600 is B) $163,800.

Use the Following Information to Calculate Cash Paid for Wages