Compute cash payments to suppliers

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Reference no: EM131837109

Question: Suppose the 2017 income statement for McDonald's Corporation shows cost of goods sold $5,178.0 million and operating expenses (including depreciation expense of $1,216.2 million) $10,725.7 million. The comparative balance sheets for the year show that inventory decreased $5.3 million, prepaid expenses increased $42.2 million, accounts payable (merchandise suppliers) increased $15.6 million, and accrued expenses payable increased $199.8 million.

Instructions: Using the direct method, compute

(a) cash payments to suppliers and

(b) cash payments for operating expenses.

Reference no: EM131837109

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