Question
Hello, I have trouble with calculating the cash payments for operating expenses. I know it is calculated by + or - in prepaid expenses &
Hello,
I have trouble with calculating the cash payments for operating expenses. I know it is calculated by + or - in prepaid expenses & + or - accrued expenses payable. None of those items are listed on the Balance Sheet. Thus, I put information of operating expenses and the answer was incorrect.
Operating expenses 23,020
Liabilities and Stockholders' Equity
Accounts payable 2014 $28,820
2013 $16,560
Income taxes payable 2014 7,260
2013 8,130
Bonds payable 2014 27,000
2013 32,440
Common stock 2014 17,380
2013 14,880
Retained earnings 2014 45,150
2013 41,030
Total 2014 $125,610
2013 $113,040
2.During the year equipment was sold for $8,020 cash. This equipment cost $17,960 originally and had a book value of $8,020 at the time of sale.
3.All depreciation expense, $15,480, is in the operating expenses.
Further analysis reveals the following.
1.Accounts payable pertain to merchandise suppliers
.2.All operating expenses except for depreciation were paid in cash.
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