(Appendix 11A) Cash Payments to Suppliers}

Blackmon Company reported net income of \(\$ 805,000\) and cost of goods sold of \(\$ 1,525,000\) on its 2018 statement of earnings. In addition, Blackmon reported an increase in inventory of \(\$ 65,410\), a decrease in prepaid insurance of \(\$ 12,800\), and a decrease in accounts payable of \(\$ 43,190\).

\section*{Required:}

Compute the amount of cash payments to suppliers using the direct method.

\section*{Cornerstone Exercise