Cornwall Co

question 61

Multiple Choice

Cornwall Co.reported a wage expense of $250,000 during 2014.Wages payable on January 1, 2014, were $5,000, and on December 31st were $7,500.If Cornwall prepares their cash flow statement using the indirect method, what adjustment to the net income will be made for the year for Cornwall when calculating their cash flow from operations?

• A)$2,500 added back to net income
• B)$2,500 deducted from net income
• C)$5,000 added back to net income
• D)$7,500 deducted from net income

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Definitions:

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