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What was the cash outflow for taxes? (For further details: please see the annex)

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

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2015/02/04
Fawzy Ahmed Salim El-Shabiby
by Fawzy Ahmed Salim El-Shabiby , Accountant , Servtel Information, Security, and Telecommunication Network Limited

Answer: (B) $4000 

  (5000 is the paid out tax expense and less1000 for the pending taxes payable for which is not  yet paid)

Imran Ahmed Mirza
by Imran Ahmed Mirza , Accounts Supervisor , Value Added Services Corp. client at Jang Group of Newspapers

The correct answer is $4000  ( Tax expenses ($5000) less $1000 tax liability.)

Mohammed Salim Allana
by Mohammed Salim Allana , Compliance and Assurance Manager , United Arab Bank

Agreed with Fawzy and Mir. It is $4000

Muhammad Sarmad Akram
by Muhammad Sarmad Akram , Accounts Administration Manager , Best All Traders

Simply $4000 as solved by Fawzy Ahmed

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

b. $4,000/- should be the answer

Tanveer Qureshi
by Tanveer Qureshi , Director , Qureshi Associates

Option-B isthe appropriate answer.

Waqas Raza Khan
by Waqas Raza Khan , Accountant , Cold Store Group of Saudi Arabia

Answer B- -4000. ..........

Ayman Esa Mustafa Farrag
by Ayman Esa Mustafa Farrag , مدير مالي , شركة الصفوف

B is the right answer,,,,,,,,

حسين محمد ياسين
by حسين محمد ياسين , Finance Manager , مؤسسة عبد الماجد محمد العمر للمقاولات العامة

Answer B >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Salah Othman Yousef Alshambaati
by Salah Othman Yousef Alshambaati , مدير ادارة الحسابات , شركة انفال الجديدة للتجارة والمقاولات

b.<<<<<<<<<<<<<<<<<<<<<<<<<< $4,000

Ranadheer Patel
by Ranadheer Patel , Accounts&Finance , Sneha Foods & Feeds Limited

c.$6000 

tax expense of $5,000, and an increase in taxes payable of $1,000

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