Determining Selected Amounts for Cash Flows from Operating ActivitiesDirect Method

Selected data taken from the accounting records of Lachgar Inc. for the current year ended December 31 are as follows:

	Balance, December 31		Balance, January 1
Accrued expenses payable (operating expenses)	$6,870		$7,510
Accounts payable (merchandise creditors)	43,270		47,760
Inventories	83,210		90,450
Prepaid expenses	3,850		4,620

During the current year, the cost of merchandise sold was $468,100, and the operating expenses other than depreciation were $92,400. 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. $