During 2014, Nebraska Wheat Company had operating expenses of $83,500 and income tax expenses of $13,000. Depreciation expense of $20,000 for 2014 was included in operating expenses. The ending balance of prepaid expenses was $3,600 in 2013 and $2,300 in 2014. The ending balance of accrued liabilities (excluding income taxes payable) was $3,000 in 2013 and $2,000 in 2014. The ending balance of income taxes payable was $4,100 in 2013 and $3,500 in 2014.

Calculate cash payments for operating expenses and income taxes in 2014 using the direct method.

Cash Payments for Operating Expenses
Cash Payments for Income Taxes

Answer rating: 100% (QA)

Answer Particulars Amount Operating expenses Less Depreciation e... View the full answer