Cash Paid for Inventory Purchases Refer to the information in Practice 5-7. Compute cash paid for inventory purchases. (Note: Al Payable relate to inventory purchases.) Cash Paid for Operating Expenses Refer to the information in Practice 5-7.Compute cash paid for operating expenses Direct Method Using the following income statement and cash flow adjustment information, prepare the Oe Cash Flow section of the statement of cash flows using the direct method. sold.... Depreciation expense. Net income.... Adjustments: (a) Interest payable increased by $80. (b) Accounts receivable decreased by $320. (c) Inventory decreased by $180. Cash Paid for Inventory Purchases Refer to the information in Practice 5-7. Compute cash paid for inventory purchases. (Note: Al Payable relate to inventory purchases.) Cash Paid for Operating Expenses Refer to the information in Practice 5-7.Compute cash paid for operating expenses Direct Method Using the following income statement and cash flow adjustment information, prepare the Oe Cash Flow section of the statement of cash flows using the direct method. sold.... Depreciation expense. Net income.... Adjustments: (a) Interest payable increased by $80. (b) Accounts receivable decreased by $320. (c) Inventory decreased by $180