Lager Company Has Other Operating Expenses of $260000

Multiple Choice

Lager Company has other operating expenses of $260000. There has been an increase in prepaid expenses of $20000 during the year and accrued liabilities are $15000 lower than in the prior period. Using the direct method of reporting cash flows from operating activities what were Lager's cash payments for operating expenses?

A) $255000
B) $265000
C) $225000
D) $295000