Clare Company Had Total Operating Expenses of $185,000 in 2017

question 67

Essay

Clare Company had total operating expenses of $185,000 in 2017, which included Depreciation Expense of $36,000. Also, during 2017, prepaid expenses increased by $8,000 and accrued expenses decreased by $7,600.
Instructions
Calculate the amount of cash payments for operating expenses in 2017 using the direct method.

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Definitions:

Spot Rate

The current market price of a currency, security, or commodity available for immediate delivery.

Interest Rate Parity

A theory asserting that the difference between the interest rates of two countries is equal to the difference between the forward exchange rate and spot exchange rate.

T-Bills

Short-term government securities issued at a discount from their face value, maturing in one year or less.

Exchange Rates

The rate at which one currency can be exchanged for another, influencing international trade and economic relationships between countries.