Asked by Ashley Hammerscchmidt on May 18, 2024
Verified
Clare Company had total operating expenses of $185000 in 2016 which included Depreciation Expense of $36000. Also during 2016 prepaid expenses increased by $8000 and accrued expenses decreased by $7600.
Instructions
Calculate the amount of cash payments for operating expenses in 2014 using the direct method.
Operating Expenses
Costs incurred during the normal operations of a business, excluding costs related to the production of goods or services.
Direct Method
A cash flow statement preparation approach that lists major categories of gross cash receipts and payments.
Depreciation Expense
The methodical distribution of the expense of a physical asset over its estimated life span.
- Evaluate cash dealings linked to the functioning of operational activities.
Verified Answer
Learning Objectives
- Evaluate cash dealings linked to the functioning of operational activities.
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