Question Details

Dense Company's income statement showed revenues 





aEx. 1
Dense Company's income statement showed revenues of $275,000 and operating expenses of $135,000. Accounts receivable decreased by $40,000 and accounts payable increased by $35,000 during the year. 
Instructions
Compute (a) cash receipts from customers and (b) cash payments for operating expenses using the direct method.

aEx. 2
Clare Company had total operating expenses of $185,000 in 2014, which included Depreciation Expense of $36,000. Also, during 2014, prepaid expenses increased by $8,000 and accrued expenses decreased by $7,600.
Instructions
Calculate the amount of cash payments for operating expenses in 2014 using the direct method.





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