(Appendix 11A) Cash Payments for Operating Expenses}

Luna Inc. reported operating expenses of \(\$ 174,500\), excluding depreciation expense of \(\$ 36,200\) for 2018. During 2018, Luna reported a decrease in prepaid expenses of \(\$ 8,500\) and a decrease in accrued liabilities of \(\$ 18,200\).

\section*{Required:}

Compute the amount of cash payments for operating expenses using the direct method.

Brief Exercise