1. reported COGS of $175,000 on the 2020 Income Statement and the following on the 2020 and 2019 balance sheets:

	2020	2019
Inventory	$40,000	$60,000
Accounts Payable	$46,000	$42,000

Under the direct method, how much would Westwood report as Cash Paid to Suppliers on the 2020 Statement of Cash Flows?

$151,000

$163,000

$191,000

$199,000

2. reported SG&A Expenses of $120,000 (which includes Depreciation Expense of $35,000) on its 2020 Income Statement and the following on its 2020 and 2019 balance sheets:

	2020	2019
Prepaid expenses	$5,000	$4,000
Accrued liabilities	$8,000	$4,000

Under the direct method, how much would Westwood report for Cash Paid for Operating Expenses on the 2020 Statement of Cash Flows?

$82,000

$85,000

$87,000

$155,000