Operating expenses other than depreciation for the year were $335,000.Prepaid expenses decreased by $7,000.Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be:
A)$335,000.
B)$342,000.
C)$328,000.
D)$7,000.

Question

Quizplus · Accepted Answer

Operating expenses other than depreciation for the year were $335,000. Prepaid expenses decreased by $7,000. So, cash payments for operating expenses to be reported on the cash flow statement using the direct method would be $335,000 - $7,000 = $328,000.

Operating Expenses Other Than Depreciation for the Year Were $335,000