Evaluate adjustments to net income using the indirect method. (LO 5)

During 2007, Mail Direct Inc. incurred salary expense of \(\$ 67,500\), as shown on the income statement. The January 1, 2007, balance sheet showed salaries payable of \(\$ 10,450\); and the December 31, 2007, balance sheet showed salaries payable of \(\$ 13,200\). What adjustment to net income would be shown in the operating section of the statement of cash flows prepared using the indirect method related to this information? How much cash was paid to employees (for salary) during 2007 ?