Determine the amount reported on the statement of cash flows

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Problem - Determining selected amounts for cash flows from operating activities-direct method

Selected data taken from the accounting records of Bentson Inc. for the current year ended December 31 are as follows:

 

Balance, December 31

Balance, January 1

Accrued expenses payable (operating expenses)

$7,826

$8,554

Accounts payable (merchandise creditors)

58,422

64,428

Inventories

108,290

117,754

Prepaid expenses

4,550

5,460

During the current year, the cost of merchandise sold was $627,900, and the operating expenses other than depreciation were $109,200. The direct method is used for presenting the cash flows from operating activities on the statement of cash flows.

Required -

1. Determine the amount reported on the statement of cash flows for (a) cash payments for merchandise.

2. Determine the amount reported on the statement of cash flows for (b) cash payments for operating expenses.

Reference no: EM132699464

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