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

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

(b) Cash payments for operating expenses.

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Balance, January 1 Balance, December 31 Accrued expenses (operating expenses) Accounts payable (merchandise creditors) $ 4,300 32,100 $ 4,900 36,800 71,200 3,500 59,500 Inventories Prepaid expenses 2,500