Howard Inc. had prepaid rent of $75,000 and $80,000 at the end of 2017 and 2018, respectively. During 2018, Howard recorded $240,000 in rent expense in its income statement. Cash outflows for rent in 2018 were:

Name: Howard Inc. had prepaid rent of $75,000 and $80,000 at the end of 2017 and 2018, respectively. During 2018, Howard recorded $240,000 in rent expense in its income statement. Cash outflows for rent in 2018 were:
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Question

Quizplus · Accepted Answer

$240,000 + $5,000 increase in prepaid rent = $245,000.