During 2011, Mail Direct, Inc., incurred salary expense of $67,500, as shown on the income statement. The

Question:

During 2011, Mail Direct, Inc., incurred salary expense of $67,500, as shown on the income statement. The January 1, 2011, balance sheet showed salaries payable of $10,450; and the December 31, 2011, 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 2011?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...