Data Solutions Reports Operating Expenses of $5 Million

question 19

Multiple Choice

Data Solutions reports operating expenses of $5 million.Operating expenses include rent expense.Prepaid rent at the beginning and end of the year are $120,000 and $80,000,respectively.All other operating expenses were paid in cash as incurred.What is the amount of cash paid for operating expenses?

• A)$5,000,000.
• B)$5,040,000.
• C)$4,960,000.
• D)$5,080,000.

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Definitions:

Capital Structure

Describes the mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, used to finance its overall operations and growth.