Saliba Corp. had beginning and ending balances in Salaries Payable of, respectively, $5,340 and $4,479. Saliba’s income statement for 2009 showed Salaries Expense of $119,835.
Required:
(a) Why would Saliba Corp. have a balance in Salaries Payable at the beginning of its fiscal year?
(b) How much was paid to employees for salaries during 2009?
(c) Indicate how the information for salaries would appear in Saliba’s 2009 statement of cash flows, assuming the company uses the indirect method of preparing a statement of cash flows.
(d) Indicate how the information for salaries would appear in Saliba’s 2009 statement of cash flows, assuming the company uses the direct method of preparing a statement of cash flows.