Question

Wireless Solutions reports operating expenses of $855,000. Operating expenses include both rent expense and salaries expense. Prepaid rent increases during the year by $17,000 and salaries payable increases by $13,500. What is the cash paid for operating expenses during the year

Answer 1

Answer:

$858,500

Explanation:

Cash paid for operating expenses = Operating expenses + Prepaid rent increase - Salaries payable increase

= $855,000 +$17,000 - $13,500

= $858,500