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)	$6,210		$6,790
Accounts payable (merchandise creditors)	36,020		39,760
Inventories	67,870		73,770
Prepaid expenses	3,460		4,150

During the current year, the cost of merchandise sold was $379,100, and the operating expenses other than depreciation were $83,000. The direct method is used for presenting the cash flows from operating activities on the statement of cash flows.