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

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Definitions:

Pachymeter

An instrument used in ophthalmology to measure the thickness of the cornea, important for assessing eye health.

Peripheral Pulses

The palpable heartbeat in peripheral parts of the body such as the wrists and ankles, indicating blood flow from the heart to different body parts.

Peripheral Vascular Disease

A circulatory disorder that causes reduced blood flow to the limbs due to narrowed blood vessels.

Dorsalis Pedis

An artery located on the top of the foot that supplies blood to the area, palpation of which can be important in assessing peripheral circulation.