43 For the years ended December 31, 2021 2020 $ 198,542,040 (191,776,791) (1,813,990) (356,650) 4,594,609 $ 212,273,952 (200,974,336) (2,348,523) (492,250) 8,458, 843 Cash flow from operating activities: Cash received from customers Cash paid to suppliers and employees Interest paid, net Income taxes paid Cash provided by operations Cash flow from investing activities: Capital expenditures and acquisitions Expenditures for other assets Cash used in investing activities Cash flow from financing activities: Principal payments of long-term debt and lease agreements Addition to long-term debt and lease liability Purchase of common stock and other capital transactions Payment of dividends Cash provided by (used in) financing activities Net increase (decrease) in cash Cash at beginning of year Cash at end of year (3,253,579) (38,560) (3,292,139) (1,917,382) (132,420) (2,049,802) (1,812,485) 3,068,378 (1,555,906) (805,558) (1,105,571) 196,899 180, 115 377,014 (5,932,675) 1,384,847 (883, 231) (996,968) (6,428,027) (18,986) 199, 101 180, 115 $ 2021 2020 $ 1,707,333 3,455,504 200,000 $ 2,247,077 3,475,087 339,766 Reconciliation of net income to net cash provided by operations: Net income Depreciation and amortization Deferred income taxes Changes in assets and liabilities, net of acquisitions: Decrease (increase) in receivables Decrease (increase) in inventories Increase (decrease) in prepaid expenses Increase (decrease) in controlled disbursements Increase (decrease) in accounts payable Increase (decrease) in accrued expenses Other, net Cash provided by operations (2,847,353) (350,508) 356,648 368,394 1,718,676 (14,085) 4,070,668 6,036,490 (89,350) 78,718 (8,114,148) 412,616 1,919 8,458, 843 $ 4,594,609 Required: Kinney reported cost of goods sold of $167,614,150 in its fiscal 2021 income statement. Compute Kinney's net inventory purchases during the year. Net purchases 44 For the years ended December 31, 2021 2020 $ 199,902, 040 (192,176,791) (2,013,990) (316,650) 4,494,609 $ 212,673,952 (201,374,336) (2,548,523) (452,250) 8,298,843 Cash flow from operating activities: Cash received from customers Cash paid to suppliers and employees Interest paid, net Income taxes paid Cash provided by operations Cash flow from investing activities: Capital expenditures and acquisitions Expenditures for other assets Cash used in investing activities Cash flow from financing activities: Principal payments of long-term debt and lease agreements Addition to long-term debt and lease liability Purchase of common stock and other capital transactions Payment of dividends Cash provided by (used in) financing activities Net increase (decrease) in cash Cash at beginning of year Cash at end of year (3,453,579) (34,560) (3,488,139) (2,117,382) (128,420) (2,245,892) (1,612,485) 3,068,378 (1,515,906) (765,558) (825,571) 180,899 183,115 364,014 (5,569, 675) 1,344,847 (863,231) (976,968) (6,065, 027) (11,986) 195, 101 183, 115 $ $ 2021 2020 $ 1,654,933 3,415,584 196,000 $ 2,139, 117 3,435,087 335, 766 Reconciliation of net income to net cash provided by operations: Net income Depreciation and amortization Deferred income taxes Changes in assets and liabilities, net of acquisitions: Decrease (increase) in receivables Decrease (increase) in inventories Increase (decrease) in prepaid expenses Increase (decrease in controlled disbursements Increase (decrease) in accounts payable Increase (decrease) in accrued expenses Other, net Cash provided by operations (2,807,353) (346,508) 352,648 364, 394 1,678, 676 (13,685) 4,830,668 6,032,490 (85, 350) 74,718 (8,874,148) 408, 616 1,879 $ 8, 298, 843 $ 4,494,689 Kinney reported cost of goods sold of $167,214,150 in its fiscal 2021 Income statement. Required: Assuming that Kinney uses accounts payable strictly for Inventory purchases and that all such purchases are on credit, how much cash did Kinney pay during the year for Inventories: (a) Cash paid to inventory suppliers (b) Cash paid to employees