Willow Industries Reported Total Operating Expenses of $160,000 on the Income

question 140

Multiple Choice

Willow Industries reported total operating expenses of $160,000 on the income statement.During the year,accounts payable decreased by $8,000,accrued liabilities decreased by $4,000,and prepaid expenses increased by $1,000.Depreciation expense totaled $6,000.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) $143,000
• B) $149,000
• C) $165,000
• D) $162,000

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