Walker Corporation reported total operating expenses of $120,000 on the income statement.During the year,accounts payable increased by $7,000,accrued liabilities increased by $5,000,and prepaid expenses decreased by $1,000.Depreciation expense totaled $10,000.Walker uses the direct method to determine the net cash provided by operating activities on the statement of cash flows.What is the amount of operating expenses adjusted to a cash basis?
A) $114,000
B) $116,000
C) $120,000
D) $124,000

Question

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The Answer of Walker Corporation reported total operating expenses of $120,000 on the income statement.During the year,accounts payable increased by $7,000,accrued liabilities increased by $5,000,and prepaid expenses decreased by $1,000.Depreciation expense totaled $10,000.Walker uses the direct method to determine the net cash provided by operating activities on the statement of cash flows.What is the amount of operating expenses adjusted to a cash basis?
A) $114,000
B) $116,000
C) $120,000
D) $124,000

Walker Corporation Reported Total Operating Expenses of $120,000 on the Income