Reference no: EM132667035
Convert to Cash Calculations
Problem 1: A company reported annual wages expense of $180,000 and insurance expense of $30,000. During the year, wages payable decreased from a $5,000 beginning balance to a $4,000 ending balance, and prepaid insurance decreased from a $50,000 beginning balance to a $20,000 ending balance. The cash paid to employees as wages and the cash paid for insurance during the year were:
Select one:
a. $181,000 and zero, respectively.
b. $180,000 and $30,000, respectively.
c. $181,000 and $60,000, respectively.
d. $179,000 and zero, respectively.
e. None of these
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