Question Details

Banner Company had total operating expenses 



a1
Dolan Company's income statement showed revenues of $230,000 and operating expenses of $150,000. Accounts receivable decreased by $60,000 and accounts payable increased by $40,000 during the year.
Instructions
Compute (a) cash receipts from customers and (b) cash payments for operating expenses using the direct method.



a2
Banner Company had total operating expenses of €160,000 in 2011, which included Depreciation Expense of €25,000. Also, during 2011, prepaid expenses increased by €5,000 and accrued expenses decreased by €6,700.
Instructions
Calculate the amount of cash payments for operating expenses in 2011 using the direct method.




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