Response to the following problem:
Selected data taken from the accounting records of Floral Escape, Inc., for the current year ended December 31 are as follows:
Balance, December 31 Balance, January 1
Accrued expenses (operating expenses) $ 4,300 $ 4,900
Accounts payable (merchandise creditors) 32,100 36,800
Inventories 59,500 71,200
Prepaid expenses 2,500 3,500
During the current year, the cost of merchandise sold was $450,000, and the operating expenses other than depreciation were $80,000. 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 payments for merchandise and
(b) cash payments for operating expenses.