Problem:
Kelly Company had cash receipts from customers in 2014 of $147,400. Cash payments for operating expenses were $97,320. Kelly has determined that at January 1, accounts receivable was $13,510, and prepaid expenses were $19,480. At December 31, accounts receivable was $18,750, and prepaid expenses were $24,910.
Required:
Question: Compute (a) service revenue and (b) operating expenses.
Note: Please show the work not just the answer.