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ABC enterprise had sales of $50,000, increase in accounts payable of $4,000, decrease in accounts receivable of $3,000, tax expense of $5,000, and an increase in taxes payable of $1,000. What was the cash outflow for taxes?
a. $54,000
b. $4,000
c. $6,000
d. $53,000
e. $45,000
Answer: (B) $4000
(5000 is the paid out tax expense and less1000 for the pending taxes payable for which is not yet paid)
The correct answer is $4000 ( Tax expenses ($5000) less $1000 tax liability.)
Agreed with Fawzy and Mir. It is $4000
b. $4,000/- should be the answer
Option-B isthe appropriate answer.
Answer B- -4000. ..........
B is the right answer,,,,,,,,
Answer B >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
b.<<<<<<<<<<<<<<<<<<<<<<<<<< $4,000
c.$6000
tax expense of $5,000, and an increase in taxes payable of $1,000
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