Walker Corporation Reported Total Operating Expenses of $120,000 on the Income

question 48

Multiple Choice

Walker Corporation reported total operating expenses of $120,000 on the income statement.During the year, accounts payable increased by $7,000, accrued liabilities increased by $5,000, prepaid expenses decreased by $1,000, and inventory increased by $10,000.Walker uses the direct method to determine the net cash provided by operating activities on the statement of cash flows.What is the amount of operating expenses adjusted to a cash basis?

• A)$114,000
• B)$116,000
• C)$120,000
• D)$124,000

---

Definitions:

Withdrawal

The process of reducing or eliminating the intake of a psychoactive substance to which one has become dependent or the symptoms experienced as a result of this process.

Schizophrenia

A chronic mental disorder characterized by distorted thinking, perceptions, emotions, language, sense of self, and behavior.

Paranoid Reaction

An exaggerated, irrational distrust or suspicion of others, often symptomatic of a psychological disorder.

Hallucinogen Dependence

A substance use disorder marked by the compulsive use of hallucinogenic drugs despite adverse consequences.