During the year, Salaries Payable decreased by $11000. Using the direct method of reporting cash flows from operating activities, if Salaries Expense amounted to $414000 for the year, the cash paid to employees (including deductions from gross pay) is

Cash paid to employees is $425,000

Explanation:

Account payable is an account which contains the balance of accrued wages that is payable to employee. Employees are paid through this account because expense has already been incurred.

Closing value of salaries payable = opening balance of salaries payable + Salaries expense for the year - cash paid to employees

Closing value of salaries payable - opening balance of salaries payable = Salaries expense for the year - cash paid to employees

Decrease in the account balance is the difference of opening balance and closing balance of account payable

-11,000 = $414,000 - cash paid to employees

Cash paid to employees = $414,000 + $11,000

Cash paid to employees = $425,000

the answer is a. $209,000

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