Selected data taken from the accounting records of Floral Escape, Inc., for the current year ended December 31 are as follows:

During the current year, the cost of merchandise sold was $450,000, and the operating expenses other than depreciation were $80,000. The direct method is used for presenting the cash flows from operating activities on the statement of cash flows.
Determine the amount reported on the statement of cash flows for
(a) Cash payments for merchandise and
(b) Cash payments for operatingexpenses.

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Accrued expenses (operating expenses) Accounts payable (merchandise creditors) Inventories Prepaid expenses Balance, December 31 $ 4,300 32,100 59,500 2,500 Balance. January1 s 4,900 36,800 71,200 3,500