Thistle Corporation reported the following items in its 20X5 financial statements:

From the notes: Inventories are carried at FIFO cost, net of an allowance to reduce finished goods inventory to the lower of cost or NRV of $ 65,000 (20X4, $ 46,000). At year- end, the company has outstanding purchase commitments in the amount of $ 13,400 (20X4, $ 6,600). The market value of these goods is equal to, or exceeds, the purchase commitment cost except as accrued in the financial statements.

Required:
1. What items would appear on the cash flow statement as a result of the inventory transactions of the year? Assume the use of the indirect method of presentation in the operating activities section.
2. Assume instead that the company uses the direct method of presentation in the operating activities section. How much did the company pay for inventory during theperiod?

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20X5 20X4 From the SFP: Inventory, at lower of cost or market Accounts payable Estimated liability on noncancellable purchase $951,000 $841,000 596,000 616,000 commitments From the income statement: Cost of goods sold Loss on purchase commitment 8,000 $4,900,000 $4,100,600 8,000