Selected Data Taken from the Accounting Records of Laser Inc

question 50

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.
Required:
Determine the amount reported on the statement of cash flows for:
(1) Cash payments for merchandise; and
(2) Cash payments for operating expenses.

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Definitions:

Breathing

The process of inhaling and exhaling air to facilitate gas exchange within the lungs.

Vocal Cords

Folded membranes in the larynx that vibrate to produce sounds when air is expelled from the lungs.

Larynx

Cartilaginous organ located between the pharynx and the trachea; in humans, contains the vocal cords; sometimes called the voice box.

Bronchi

The major air passages of the lungs that diverge from the windpipe, allowing the transportation of air in and out of the lungs.