Textbook Problem

Determining selected amounts for cash flows from operating activities—direct method

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

	Balance, December 31	Balance, January 1
Accrued expenses payable (operating expenses)	$ 12,650	$ 14,030
Accounts payable (merchandise creditors)	96,140	105,800
Inventories	178,020	193,430
Prepaid expenses	7,360	8,970

During the current year, the cost of goods sold was $1,031,550, and the operating expenses other than depreciation were $179,400. 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 payments for merchandise and (B) cash payments for operating expenses.