eBook Determining Selected Amounts for Cash Flows from Operating ActivitiesDirect Method ? Selected data taken from the accounting records of Ginis Inc. for the current year ended December 31 are as follows: Balance, December 31 Balance, January 1 $5,790 $5,300 Accrued expenses payable (operating expenses) Accounts payable (merchandise creditors) 34,840 38,450 Inventories 64,440 70,040 Prepaid expenses 2,970 3,560 During the current year, the cost of merchandise sold was $381,600, and the operating expenses other than depreciation were $71,300. 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. 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? Appendix 2. Check My Work Previous Next All work saved. Save and Exit Submit Assignment for Grading