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So salaries payable is 18,000?

Lol.. im sorry.. I thought the answer was b, not c... c is the right answer... but why cs over retained earnings?

Taylor Company had a salaries payable balance of $18,000 on December 31, 2004. During 2005, it paid $50,000 in cash as salaries, and recorded a salary expense of $50,000. Its December 31, 2005...

Kirby, Inc. records a sale with a gross margin of $1,400. Which one of the followingstatements correctly describes the effect of such a sale on its balance sheet?
A. The gross margin account...

On March 31, 2005, Cars, Inc. owes Preston Devices, one of its suppliers, $25,000 for previous purchases. During April 2005, Preston sells Cars devices with a sales price of $10,000 and a cost to...

Today is January 1, 2011. On January 1 of the years 2012 through 2021 you are to receive$50,000. If the cash flows are discounted at 10% a year, what is the present value of these cash flows as of...

A tool rental shop can rent 30 floor sanders per day at a daily rate of $12 per sander. For each additional $2 a day charged per sander, one fewer sander is rented. If the store wants to maximize its...

On January 1 of the years 2012, 2013, 2014 you will invest $10,000. What will your investment be worth on January 1, 2014 if the rate of return is 10%?

just want to make sure if the equation is...

A company made $100,000 profit this year. If they anticipate that profits will increase by 6% a year going forward, how long will it take for the profits to double?
A. Between 9 and 10 years
B....

basically you are saying that they bought more than they sold, and since the amt they bought = total payments, the total payments is more than they sold.

Therefore the answer would have to be D?

Not sure though.. we don't know if the company paid cash or not...

Does anyone understand the question?

I thought it was B because long debt is paid off so total debt declines and probably cash was used to pay it off so assts would decline.

Since current ratio is Current Assets/Current Liabilities,...

I thought it was C but I'm not sure if my logic is right. I assumed that since the store bought inventory on credit, they would have to repay back through cash during 2005.

Well I thought that the answer was b.. since cash has increased and current ratio is current asset / current liabilities, the total ratio would be smaller.
That's my opinion but not sure if it is...

A record store buys all of its inventory on credit. During 2005, the store's inventory account increased by $10,000. Which of the following statements must be true for Planet Music during 2005?
...

A company makes a cash sale with a positive gross margin. Which one of the following statements describes the effect of the sale on the company?
A. Current ratio increases
B. Current ratio...

Oops I also forgot the last choice
D. Current ratio increases; total debt to equity ratio increases

A company pays off a long-term debt in full. Which one of the following statements describes the effect of the sale on the company?

A. Current ratio decreases; total debt to equity ratio increases...