Selected Data Taken from the Accounting Records of Laser Inc

question 112

Essay

Selected data taken from the accounting records of Laser Inc. for the current year ended December 31 are as follows: $\begin{array}{|l|r|r|}\hline& \begin{array}{c}\text { Balance, } \\\text { December } 31\end{array} & \begin{array}{c}\text { Balance, } \\\text { January } 1\end{array} \\\hline \text { Accrued operating expenses } & \$ 5,590 & \$ 6,110 \\\hline \text { Accounts payable (merchandise creditors) } & 41,730 & 46,020 \\\hline \text { Inventories } & 77,350 & 84,110 \\\hline \text { Prepaid expenses } & 3,250 & 3,900 \\\hline\end{array}$ ​
During the current year, the cost of goods sold was $448,500, and the operating expenses other than depreciation were $78,000. The direct method is used for presenting the cash flows from operating activities on the statement of cash flows.
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Required:
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:

Callus

Undifferentiated tissue formed on an explant (excised tissue or organ) in plant tissue culture.

Trichomes

Small hair-like outgrowths on plants that serve various functions including protection against herbivores and minimizing water loss.

Parenchyma

A type of plant tissue composed of living cells that are often spacious and used for functions such as photosynthesis, storage, and tissue repair.

Ground Tissue

A type of plant tissue that fills the interior of a plant, consisting of parenchyma, collenchyma, and sclerenchyma cells, and is responsible for photosynthesis, storage, and support.