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McDaniel,Inc Use the Direct Method to Compute the Payments Made to Flows.Refer

question 63

Multiple Choice

McDaniel,Inc.uses the direct method to prepare its statement of cash flows.Refer to the following financial statement information for the year ended December 31,2017: $McDaniel,Inc.uses the direct method to prepare its statement of cash flows.Refer to the following financial statement information for the year ended December 31,2017: \begin{array}{c} \text {McDaniel, Inc.}\\ \text {Income Statement}\\ \text {December 31, 2017 and 2016}\\\begin{array}{|l|r|l|} \hline & 2017 & 2016 \\ \hline \text { Sales Revenue } & \$ 289,600 & \\ \hline \text { Interest Revenue } & 2,600 & \\ \hline \text { Gain on Sale of Plant Assets } & 6,000 & \\ \hline \text { Total Revenues and Gains } & & \$ 298,300 \\ \hline \text { Cost of Goods Sold } & 146,800 \\ \hline \text { Salaries and Wages Expense } & 47,500 \\ \hline \text { Depreciation Expense - Plant Assets } & 16,000 \\ \hline \text { Other Operating Expense } & 24,700 \\ \hline \text { Interest Expense } & 3,500 \\ \hline \text { Income Tax Expense } & \text { 7,800 } \\ \hline \text { Total Expenses } & & 246,300 \\ \hline \text { Net Income } & & \$ 52,000 \\ \hline \end{array}\end{array} Use the direct method to compute the payments made to employees.(Accrued Liabilities relate to other operating expense. ) A) $72,200 B) $43,500 C) $24,700 D) $47,500$ $\begin{array}{c}\text {McDaniel, Inc.}\\\text {Income Statement}\\ \text {December 31, 2017 and 2016}\\\begin{array}{|l|r|l|}\hline & 2017 & 2016 \\\hline \text { Sales Revenue } & \$ 289,600 & \\\hline \text { Interest Revenue } & 2,600 & \\\hline \text { Gain on Sale of Plant Assets } & 6,000 & \\\hline \text { Total Revenues and Gains } & & \$ 298,300 \\\hline \text { Cost of Goods Sold } & 146,800 \\\hline \text { Salaries and Wages Expense } & 47,500 \\\hline \text { Depreciation Expense - Plant Assets } & 16,000 \\\hline \text { Other Operating Expense } & 24,700 \\\hline \text { Interest Expense } & 3,500 \\\hline \text { Income Tax Expense } & \text { 7,800 } \\\hline \text { Total Expenses } & & 246,300 \\\hline \text { Net Income } & & \$ 52,000 \\\hline\end{array}\end{array}$ Use the direct method to compute the payments made to employees.(Accrued Liabilities relate to other operating expense. )

Definitions:

Auditory Tube

A tube connecting the middle ear to the nasopharynx, helping equalize pressure on either side of the eardrum.

Pharynx

The pharynx is a muscular tube that connects the mouth and nasal passages with the esophagus and larynx, serving both respiratory and digestive functions.

Ossicles

Small bones, especially those in the middle ear that include the malleus, incus, and stapes, which transmit sound vibrations.

Eardrum

A thin membrane that separates the outer ear from the middle ear and vibrates in response to sound waves.