The income statement for Garcia Company shows cost of goods sold \(\$ 355,000\) and operating expenses (exclusive of depreciation) \(\$ 230,000\). The comparative balance sheet for the year shows that inventory increased \(\$ 6,000\), prepaid expenses decreased \(\$ 6,000\), accounts payable (merchandise suppliers) decreased \(\$ 8,000\), and accrued expenses payable increased \(\$ 8,000\).

\section*{Instructions}

Using the direct method, compute

(a) cash payments to suppliers and

(b) cash payments for operating expenses.