Question

Blossom Company reports operating expenses of $100,000, excluding depreciation expense of $17,000 for 2022. During the year, prepaid expenses decreased $8,200 and accrued expenses payable increased $5,400.
Compute the cash payments for operating expenses in 2022.
The cash payments for operating expenses in 2022 $

Answer 1

Answer:

$86,400.00  

Explanation:

The operating expenses recorded in the year was $100,000, out of the total expenses,$8,200 was due to a decrease in prepaid expenses(no cash paid) and $5,400 was as a result of an increase in accrued expenses payable(no cash was paid in that regard as well)

Cash payments for operating expenses=operating expenses-decrease in prepaid expenses-increase in accrued expenses payable

cash payments for operating expenses=$100,000-$8,200-$5,400=$86,400.00