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

	Balance December 31	Balance January 1
Accrued operating expenses	$5,590	$6,110
Accounts payable (merchandise creditors)	41,730	46,020
Inventories	77,350	84,110
Prepaid expenses	3,250	3,900

During the current year, the cost of goods sold was $448,500, and the operating expenses other than depreciation were $78,000. The direct method is used for presenting the cash flows from operating activities on the statement of cash flows.

Required:

Determine the amount reported on the statement of cash flows for:

1. Cash payments for merchandise. $

2. Cash payments for operating expenses. $