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    Direct method calculation of cash payments

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    Calculate the amount of cash payments for operating expenses in 2003 using the direct method.

    Cone Company had total operating expenses of $150,000 in 2003, which included Depreciation Expense of $20,000. Also, during 2003, prepaid expenses increased by $5,000 and accrued expenses decreased by $8,700.

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    Solution Summary

    The solution shows how to use the direct method to calculate the amount of cash payments for operating expenses.