Question

Wireless Solutions reports operating expenses of $955,000. Operating expenses include both rent expense and salaries expense. Prepaid rent increases during the year by $27,000 and salaries payable increases by $18,500. What is the cash paid for operating expenses during the year

Answer 1

$963,500

Step-by-step explanation:

Given the that:

Operating expenses = $955,000

Prepaid rent increase = $27,000

Salaries payable increase = $18,500

Then, Cash paid for operating expenses during the year is computed by;

= Operating expenses + Prepaid rent increase - Salaries payable increase

= $955,000 + $27,000 - $18,500

= $963,500