Lazarus Ltd. had total operating expenses of $120,000 in 2014, which included depreciation expense of $20,000. Also, during 2014, prepaid expenses increased by $5,000 and accrued liabilities decreased by $6,700.
Instructions
Calculate the amount of cash payments for operating expenses in 2014, using the direct method.

Question

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The Answer of Lazarus Ltd. had total operating expenses of $120,000 in 2014, which included depreciation expense of $20,000. Also, during 2014, prepaid expenses increased by $5,000 and accrued liabilities decreased by $6,700.
Instructions
Calculate the amount of cash payments for operating expenses in 2014, using the direct method.