Selected Data for the Current Year Ended December 31 Are

question 76

Short Answer

Selected data for the current year ended December 31 are as follows:
During the current year, the cost of merchandise sold was $620,000 and the operating expenses other than depreciation were $142,000.  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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Definitions:

Learned Association

A psychological principle where an individual connects two stimuli or a stimulus and a behavior through repeated exposure.

Sensorimotor Stage

The first stage in Piaget's theory of cognitive development, from birth to about 2 years of age, where infants learn about the world through their sensory impressions and motor activities.

Concrete Operational

A stage in Jean Piaget's theory of cognitive development during which children (ages 7-12 approximately) gain a better understanding of mental operations, leading to more logical thoughts about concrete events.

Formal Operational

The stage of cognitive development, according to Piaget, where individuals can think abstractly and systematically.