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Thunder Ltd

question 149

Essay

Thunder Ltd. had total operating expenses of $ 120,000 in 2021, which included depreciation expense of $ 20,000. Also, during 2021, prepaid expenses increased by $ 5,000 and accrued liabilities decreased by $ 6,700.
Instructions
Calculate the amount of cash payments for operating expenses in 2021, using the direct method.


Definitions:

Monopoly

A market structure characterized by a single seller, selling a unique product in the market.

Marginal Revenue

The increase in revenue resulting from the sale of one additional unit of a product or service.

Sales Price

The amount of money a buyer pays to purchase a product or service.

Monopolist

A market participant that is the sole provider of a product or service, possessing significant market power to set prices.

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