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Question
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 expenses payable | $ 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 merchandise 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.
Determine the amount reported on the statement of cash flows for:
a. Cash paid for merchandise
b. Cash paid for operating expenses
Answer
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