Question

The Garden Company began the accounting period with a $46,000 credit balance in its Accounts Payable account. During the accounting period, Garden Company incurred expenses on account of $125,000. The ending Accounts Payable balance was $65,000. Required Based on this information, determine the amount of cash outflow for expenses during the accounting period. (Hint: Use a T-account for Accounts Payable. Enter the debits and credits for the given events, and solve for the missing amount.)

Answer 1

the cash outflow for expenses is $106,000

Step-by-step explanation:

The computation of the cash outflow for expenses is shown below:

Beginning balance $46,000

add; expenses $125,000

less; ending balance -$65,000

Cash outflow for expenses $106,000

Hence, the cash outflow for expenses is $106,000