Question

Freedom Wireless reports operating expenses of $265,000. Operating expenses include both rent expense and salaries expense....

Freedom Wireless reports operating expenses of $265,000. Operating expenses include both rent expense and salaries expense. Prepaid rent decreases during the year by $17,000 and salaries payable increases by $19,000.

What is the cash paid for operating expenses during the year?

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Answer #1

Cash paid for operating expense = Operating expense-Decrease prepaid expense-increase salary payable

                                                     = 265000-17000-19000

Cash paid for operating expense = 229000

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