Operating expenses other than depreciation for the year were $400,000.Accrued expenses payable increased by $35,000.Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be:
A)$400,000.
B)$435,000.
C)$365,000.
D)$35,000.

Question

Quizplus · Accepted Answer

The cash payments for operating expenses would be the operating expenses minus the increase in accrued expenses payable: $400,000 - $35,000 = $365,000.

Operating Expenses Other Than Depreciation for the Year Were $400,000