Operating expenses-other than depreciation-for the year were $280,000.Prepaid expenses increased by $16,000.Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be:

Question

Quizplus · Accepted Answer

The cash payments for operating expenses would be the operating expenses plus the increase in prepaid expenses. Therefore, $280,000 + $16,000 = $296,000.

Operating Expenses-Other Than Depreciation-For the Year Were $280,000