Operating Cash Flows (Direct Method) Howell Companys current-year income statement reports the following.

Sales	$628,000
Cost of goods sold	360,000
Gross profit	$268,000

Comparative balance sheets show the following (accounts payable relate to merchandise purchases).

	End of Year	Beginning of Year
Accounts receivable	$54,400	$48,000
Inventory	87,200	79,200
Prepaid expenses	1,600	6,400
Accounts payable	24,800	28,800

a. Compute current-year cash received from customers. b. Compute cash paid for merchandise purchased.