The income statement for Alatorre Company shows cost of goods sold of $317,000 and operating expenses (exclusive of depreciation) of $250,000. The comparative balance sheets for the two years show that inventory increased $6,000. prepaid expenses decreased $6,000, accounts payable (merchandise suppliers) decreased $8,000, and accrued expenses payable increased $8,000.

Instructions Using the direct method, compute

(a) cash payments to suppliers and

(b) cash payments for operating expenses.