eBook Determining Selected Amounts for Cash Flows from Operating ActivitiesDirect Method Selected data taken from the accounting records of Lachgar Inc. for the current year ended December 31 are as follows: Balance, December 31 Balance, January 1 Accrued expenses payable (operating expenses) $6,720 $7,340 Accounts payable (merchandise creditors) 42,360 46,750 Inventories 79,060 85,940 Prepaid expenses 3,820 4,590 During the current year, the cost of merchandise sold was $437,500, and the operating expenses other than depreciation were $91,700. 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 payments for merchandise. $

b. Determine the amount reported on the statement of cash flows for cash payments for operating expenses. $