Financial Reporting and Analysis Q159

159The other operating expenses reported by King Fishers Ltd. were $20 million. These comprised electricity expenses and insurance expense. The prepaid insurance expense decreased by $6 million. The accrued electricity expense increased by $8 million. The cash paid for other operating expenses is closest to:

Option : A
Explanation : Cash paid = Operating expenses - decrease in prepaid expense - increase in accrued expense Cash paid = 20 - 6 - 8 = 6.

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