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Determining selected amounts for cash flows from operating activities-direct method
Selected data taken from the accounting records of Bentson Inc. for the current year ended December 31 are as follows:
Balance, December 31
Balance, January 1
Accrued expenses payable (operating expenses)
$ 7,826
$ 8,554
Accounts payable (merchandise creditors)
58,422
64,428
Inventories
108,290
117,754
Prepaid expenses
4,550
5,460
During the current year, the cost of merchandise sold was $627,900, and the operating expenses other than depreciation were $109,200. 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.
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