The income statement for James Company showed cost of goods sold of $90,000 and operating expenses of $62,000. The comparative balance sheets for the year show that inventory decreased $4,000, prepaid expenses increased $8,000, accounts payable increased $5,000,and accrued expenses payable decreased $6,000.

Instructions:

Compute using the direct method:

(a) Cash payments to suppliers

(b) Cash payments for operating expenses