Question

ABC Ltd. Had incurred $141,000 in expenses for the year. These expenses included depreciation expense of $8,500 and an increase in accounts payable of $2,400. How much cash did the company pay for expenses?

Q: Answer-ABC Ltd. Had incurred $141,000 in expenses for the year. These expenses included depreciation expens...

Total expenses are 141,000. Depreciation expense is a non-cash item. The increase in accounts payable means that 2,400 of the expense was posted to a liability account, not paid in cash. Cash payments are 141,000 8,500 2,400 130,100.

A $100,000

B $105,000

C $106,000

D $141000

E $130,100

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ABC Ltd. Had incurred $141,000 in expenses for the year. These expenses included depreciation expense of $8,500 and an increase in accounts payable of $2,400. How much cash did the company pay for expenses?

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