Hello,

 

I have trouble with calculating the cash payments for operating expenses. I know it is calculated by + or - in prepaid expenses & + or - accrued expenses payable. None of those items are listed on the Balance Sheet. Thus, I put information of operating expenses and the answer was incorrect.

Operating expenses 23,020

 

Liabilities and Stockholders' Equity

Accounts payable 2014 $28,820

2013 $ 16,560

Income taxes payable 2014 7,260

2013 8,130

Bonds payable 2014 27,000

2013 32,440

Common stock 2014 17,380

2013 14,880

Retained earnings 2014 45,150

2013 41,030

   Total 2014 $125,610

2013 $113,040

 

 

 

2.During the year equipment was sold for $8,020 cash. This equipment cost $17,960 originally and had a book value of $8,020 at the time of sale.

3.All depreciation expense, $15,480, is in the operating expenses.

 

Further analysis reveals the following.

 

1.Accounts payable pertain to merchandise suppliers

.2.All operating expenses except for depreciation were paid in cash.