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

During the current year, the cost of merchandise sold was $345,000, and the operating expenses other than depreciation were $60,000. 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 operatingexpenses.

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Balance, December 31 Balance, January 1 Accrued expenses (operating expenses) Accounts payable (merchandise creditors) Inventories Prepaid expenses $ 4,300 32,100 59,500 2,500 4,700 35,400 64,700 3,000