1. Harris Inc. had salaries payable of $90,000 as of January 1 and $40,000 as of December 31. During the year, Harris showed $1,550,000 in salaries expense on the income statement. Cash outflows for salaries for the year were

a. $1,500,000 b. $1,550,000 c. $1,600,000 d. $1,630,000

2. Toolson Corporation reported net income of $160,000 for the current year ended June 30. Accounts receivable had a beginning balance of $34,000 and an ending balance of $48,000. Accounts payable had a beginning balance of $29,000 and an ending balance of $45,000. Assuming that this is all of the relevant information, Toolson's cash flows from operating activities are

a. $130,000 b. $162,000 c. $158,000 d. $190,000

3. JKL Company enters into a contract with Craven Library to help them streamline their purchasing process. The contract specifies that Craven Library will pay JKL $270,000 in the form of a fixed fee plus an additional $10,000 if the library achieves $200,000 in cost savings. JKL estimates a 55% chance that the library will achieve a $200,000 savings. Assuming JKL estimates that the transaction price is the expected value transaction price. The transaction price is recorded as

a. $270,000 b. $275,500 c. $280,000 d. $264,500

4. Porter Labs is a wholesaler who sells microscopes for use in high schools to retailers. On August 1 Porter contracts with the LMN to sell 1900 microscopes to LMN to be delivered September 1. The contract price is set at $820 each, with a 20% volume discount if sales exceed 2,500 microscopes within the year. The probability of sales of 2,500 microscopes is expected to be 53%. Using the most-likely-amount approach the consideration to be recognized is estimated to be

a. $1,558,000 b. $1,246,400 c. $1,502,000 d. $1,392,852