Banner Company had total operating expenses of $160,000 in 2010, which included Depreciation Expense of $25,000. Also, during 2010, prepaid expenses increased by $5,000 and accrued expenses decreased by $6,700.
Instructions
Calculate the amount of cash payments for operating expenses in 2010 using the direct method.

Question

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The Answer of Banner Company had total operating expenses of $160,000 in 2010, which included Depreciation Expense of $25,000. Also, during 2010, prepaid expenses increased by $5,000 and accrued expenses decreased by $6,700.
Instructions
Calculate the amount of cash payments for operating expenses in 2010 using the direct method.

Banner Company Had Total Operating Expenses of $160,000 in 2010