Determining Selected Amounts for Cash Flows from (Used for) Operating Activities-Direct Method Selected data taken from the accounting records of Ginis Inc. for the current year ended December 31 are as follows: Accrued expenses payable (operating expenses) Accounts payable (merchandise creditors) Inventories Balance, December 31 $5,490 42,720 82,790 Balance, January 1 $6,000 47,150 89,990 During the current year, the cost of merchandise sold was $493,400, and the operating expenses other than depreciation were $75,400. The direct method is used for presenting the cash flows from operating activities on the statement of cash flows. a. Determine the amount reported on the statement of cash flows for cash paid for merchandise. $ 490,230 X b. Determine the amount reported on the statement of cash flows for cash paid for operating expenses. 74,890 X Feedback Check My Work What accounts would have an impact on the amount of cash paid for merchandise? Consider what journal entry would need to be made to pay for purchases made on account. What accounts would have an impact on the cash paid for operating expenses during a period?