Determining Selected Amounts for Cash Flows from (Used for) Operating Activities-Direct Method Selected data taken from the accounting records of Ginis Inc. for the current year ended December 31 are as follows: Balance, December 31 Balance, January 1 Accrued expenses payable (operating expenses) $6,100 $6,670 Accounts payable (merchandise creditors) 37,580 41,480 Inventories 71,190 77,380 During the current year, the cost of merchandise sold was $400,400, and the operating expenses other than depreciation were $81,800. The direct method is used for presenting the cash flows from operating activities on the statement of cash flows. a. Determine the amount reported on the statement of cash flows for cash paid for merchandise. b. Determine the amount reported on the statement of cash flows for cash paid for operating expenses.

Determining Selected Amounts for Cash Flows from (Used for) Operating Activities-Direct Method Selected data taken from the accounting records of Ginis Inc. for the current year ended December 31 are as follows: Balance, December 31 Balance, January 1 Accrued expenses payable (operating expenses) $6,100 $6,670 Accounts payable (merchandise creditors) 37,580 41,480 Inventories 71,190 77,380 During the current year, the cost of merchandise sold was $400,400, and the operating expenses other than depreciation were $81,800. The direct method is used for presenting the cash flows from operating activities on the statement of cash flows. a. Determine the amount reported on the statement of cash flows for cash paid for merchandise. b. Determine the amount reported on the statement of cash flows for cash paid for operating expenses.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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