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

---

Definitions:

Dividends

Payments made by a corporation to its shareholders, usually derived from the company's profits.

Assets

Resources owned by a person or a company, regarded as having value and available to meet debts, commitments, or legacies.

Debt Securities

Securities that represent loans to a corporation.

Bonds

Financial securities that represent a loan made by an investor to a borrower, typically corporate or governmental, that pays back interest over time.