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 and
(b)cash payments for operating expenses.
Definitions:
Net Operating Income
The profit a company generates from its regular business activities, excluding deductions for interest and taxes.
Units
A measurement or quantity of something considered as a standard measure, in business often referring to a single item of a product.
Planning Budget
A budget prepared for a particular level of activity, often used as a benchmark for evaluating actual performance.
Selling
The process of promoting and transferring goods or services to the customer in exchange for payment.
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