50. The following information was taken from the 2015 financial statements of Jenny Gardner Corporation:

Inventory, January 1, 2015 $ 90,000

Inventory, December 31, 2015 120,000

Accounts payable, January 1, 2015 75,000

Accounts payable, December 31, 2015 120,000

Sales revenue 600,000

Cost of goods sold 400,000

If the direct method is used in the 2015 statement of cash flows, what amount should Jenny Gardner report as cash payments to suppliers?

a. $445,000

b. $475,000

c. $395,000

d. $415,000

51. Alex Company prepares its statement of cash flows using the direct method for operating activities. For the year ended December 31, 2015, Alex Company reports the following activity:

Sales on account $1,400,000

Cash sales 740,000

Decrease in accounts receivable 610,000

Increase in accounts payable 72,000

Increase in inventory 48,000

Cost of good sold 1,050,000

What is the amount of cash collections from customers reported by Alex Company for the year ended December 31, 2015?

a. $2,750,000

b. $1,530,000

c. $2,140,000

d. $2,010,000