Determining Selected Amounts for Cash Flows from Operating Activities -- Direct Method Selected data taken from the accounting records of Ginis Inc. for the current year ended December 31 are as follows: Balance, December 31 Balance, January 1 $6,050 Accrued expenses payable (operating expenses) Accounts payable (merchandise creditors) 42,960 79,620 $6,610 47,420 86,540 Inventories During the current year, the cost of merchandise sold was $465,500, and the operating expenses other than depreciation were $83,300. The direct method is used for presenting the cash flows from operating activities on the statement of cash flows. a. Determine the amount reported on the statement of cash flows for cash payments for merchandise. $ b. Determine the amount reported on the statement of cash flows for cash payments for operating expenses