Show Company had total operating expenses of $153000 in 2016 which included Depreciation Expense of $30000. Also during 2016 prepaid expenses decreased by $9500 and accrued expenses increased by $8500.
Instructions
Calculate the amount of cash payments for operating expenses in 2016 using the direct method.

Question

Isaac Hafner · Accepted Answer

Final Answer :  Operating expenses  $ 153 , 000 Depreciation expense  ( 30 , 000 )  Decrease in prepaid expenses ( 9 , 500 )  Increase in accrued liabilities  ( 8 , 500 )  Cash payments for operating expenses. $ 105 , 000 \begin{array}{llr}  	ext {Operating expenses  }  & \$153,000\ 	ext {Depreciation expense  }  & (30,000)\ 	ext {  Decrease in prepaid expenses}  & (9,500)\ 	ext { Increase in accrued liabilities }  & (8,500)\ 	ext {  Cash payments for operating expenses.}  & \$105,000\\end{array} Operating expenses  Depreciation expense   Decrease in prepaid expenses  Increase in accrued liabilities   Cash payments for operating expenses. ​ $153 , 000 ( 30 , 000 ) ( 9 , 500 ) ( 8 , 500 ) $105 , 000 ​

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