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

During the current year, the cost of merchandise sold was $1,031,550, and the operating expenses other than depreciation were $179,400. 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, Balance, December 31January 14,030 Accrued expenses payable (operating expenses) Accounts payable (merchandise creditors) Inventories Prepaid expenses 12,650 96,140 178,020 7,360 105,800 193,430 8,970