Thunder Ltd. had total operating expenses of $ 120,000 in 2021, which included depreciation expense of $ 20,000. Also, during 2021, prepaid expenses increased by $ 5,000 and accrued liabilities decreased by $ 6,700.
Instructions
Calculate the amount of cash payments for operating expenses in 2021, using the direct method.

Question

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The Answer of Thunder Ltd. had total operating expenses of $ 120,000 in 2021, which included depreciation expense of $ 20,000. Also, during 2021, prepaid expenses increased by $ 5,000 and accrued liabilities decreased by $ 6,700.
Instructions
Calculate the amount of cash payments for operating expenses in 2021, using the direct method.