Salem Corporations income statement showed cost of goods sold of $115,000 and operating expenses of $20,000. The inventory account decreased $7,000, accounts payable increased $5,000, prepaid expenses increased $3,000, and accrued expenses payable decreased $2,000.
Calculate the following using the direct method:
1. Cash payments for operating expenses
2. Cash payments to suppliers

Question

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The Answer of Salem Corporations income statement showed cost of goods sold of $115,000 and operating expenses of $20,000. The inventory account decreased $7,000, accounts payable increased $5,000, prepaid expenses increased $3,000, and accrued expenses payable decreased $2,000.
Calculate the following using the direct method:
1. Cash payments for operating expenses
2. Cash payments to suppliers

Salem Corporations Income Statement Showed Cost of Goods Sold of $115,000