Answer:
$590,700
Explanation:
We can determine the amount of Cash outflows for salaries in Year 2 by preparing a Salaries Payable T - Account.
Salaries Payable T - Account.
Debit
Ending Balance                      $90,700
Cash (Balancing figure) Â Â Â Â Â Â Â Â Â Â Â Â Â Â $590,700
Total                              $681,400
Credit
Beginning Balance                   $61,400
Income Statement                  $620,000
Total                              $681,400
thus,
Cash outflows for salaries in Year 2 were $590,700.
