Operating Expenses Other Than Depreciation for the Year Were $400,000

Multiple Choice

Operating expenses other than depreciation for the year were $400,000. Prepaid expenses increased by $17,000 and accrued expenses decreased by $30,000 during the year. Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be

A) $353,000
B) $413,000
C) $447,000
D) $383,000