SE2. Cash Payments for Operating Expenses and Income Taxes: Direct Method During 2014, Nebraska…

 

SE2. Cash Payments for Operating Expenses and Income Taxes: Direct Method

During 2014, Nebraska Wheat Company had operating expenses of $79,000 and income tax expense of $12,500. 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 pay- able) 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.

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