Bonita Company has other operating expenses of $260200. There has been an increase in prepaid expenses of $20400 during the year, and accrued liabilities are $14500 lower than in the prior period. Using the direct method of reporting cash flows from operating activities, what were Bonita's cash payments for operating expenses? $266100 $295100 O $254300 O $225300
Cash payment for operating expenses means the total amount paid for operating expenses during the period that is to be shown in cash flow statement as cash outflow under cash flow from operating activities.
Operating expenses of $ 260200 is the expenses for the year.
An increase in prepaid expenses of $ 20400 means the company has paid an excess of $ 20400 for the operating expenses during the year. It results in cash outflow.
Accrued liabilities are $ 14500 lower than in the prior period means the company has paid $ 14500, out of the accrued liabilities of the prior period, during the year. This is a reduction in accrued liabilities for operating expenses. It also results in cash outflow.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
