The cost of merchandise sold during the year was $58, 398. Merchandise inventories were $13, 757 and $8, 688 at the beginning and end of the year, respectively. Accounts payable were $5, 271 and $4, 041 at the beginning and end of the year, respectively. Using the direct method of reporting cash flows from operating activities, cash payments for merchandise total $5, 271 $52, 099 $58, 398 $54, 559