sm 52.0 PROBLEM 5.9 Prepayments and accrued expense 1 In a recent annual report the following information is provided: 2019 2018 Sm Prepayments 50.8 Assume this amount all related to insurance and that $70 million cash was paid during the year to the insurance company. What is the insurance expense for the 2019 financial year? 2 A large soft drink manufacturer, in a recent annual report, included an amount of $306.7 million in accrued charges ($297.1 million in 2018). Assume that all these accrued charges related to wages. If the wages paid during the year were $500 million, what was the wages expense for 2019? 3 In note 10 of its 30 September 2019 annual report, OK Limited shows the following: 2019 2018 Sm Prepayment and other assets 36.2 Assume that this amount is all related to insurance and that $30 million cash was paid during the year to the insurance company. What is the insurance expense for the year ended 30 September 2019? Sm 34.4