Hiller Company Had Total Operating Expenses of $155,000 in 2010

question 96

Essay

Hiller Company had total operating expenses of $155,000 in 2010, which included Depreciation Expense of $25,000. Also during 2010, prepaid expenses decreased by $9,000 and accrued expenses increased by $7,500.
Instructions
Calculate the amount of cash payments for operating expenses in 2010 using the direct method.

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Definitions:

Defect Rate

The number of goods produced that are outside the company’s boundaries of acceptable quality.

Tolerance Range

The boundaries a manager sets in determining the acceptable quality of a product.

Dispatching

The process of sending off goods or services to their intended destinations or assigning tasks to individuals.

Taxi Company

A business entity that provides transportation services to passengers via vehicles, such as cars or vans, often on a metered fare basis.