Effects, on cash flows, of transactions involving suppliers and customers. Refer to the trial balance excerpts for Home and Office Depot in Exhibit 6.7. These are the post-closing trial balance at the beginning of the year and the adjusted, preclosing trial balance at the end of the year. This means that the firm has made all year-end adjusting entries but has not closed its income statement accounts to retained earnings. Home and Office Depot deals with

- many retail customers, some of whom have not paid for goods they have purchased, and

- many suppliers of goods, some of whom the firm has paid for orders not yet received and some of whom have delivered goods for which the firm has not yet paid.

Home and Office Depot settles all its accounts with customers and suppliers with cash, never with noncash assets.

a. Calculate the amount of cash the firm received from its customers during the year.

b. Calculate the amount of cash the firm paid to its suppliers of retail merchandise during the year.