Selected Data Taken from the Accounting Records of Laser Inc

question 69

Essay

Selected data taken from the accounting records of Laser Inc.for the current year ended December 31 are as follows:​ During the current year,the cost of merchandise 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.​RequiredDetermine 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:

Budget Process

A systematic method used by organizations or governments to allocate resources, assess revenues, and determine expenditures for a specific time period.

Marginal Propensity

The tendency of an individual or population to consume or save an extra unit of income.

Lump-Sum Taxes

Taxes that are a fixed amount, not varying with the income or wealth of the taxpayer, and are paid at one time instead of in installments.

Budget Deficit

A situation where a government's expenditures exceed its revenues during a specified period of time, leading to borrowing or debt accumulation.