Show Company Had Total Operating Expenses of $153,000 in 2017

question 76

Essay

Show Company had total operating expenses of $153,000 in 2017, which included Depreciation Expense of $30,000. Also during 2017, prepaid expenses decreased by $9,500 and accrued expenses increased by $8,500.
Instructions
Calculate the amount of cash payments for operating expenses in 2017 using the direct method.

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Definitions:

Utility Maximization

An economic principle that suggests consumers aim to get the greatest satisfaction possible from their available resources.

Consumer's First

A philosophy or policy placing consumer interests and satisfaction at the forefront of business decision-making.

Marginal Utility-To-Price Ratio

The comparison of the additional satisfaction received from consuming one more unit of a good to the price of that unit, used to maximize utility.

Utility Maximization

The concept in economics that individuals or households will attempt to get the greatest satisfaction possible from their available resources.