Reference no: EM132566322

Question - Suppose a recent income statement for Mcdonald's Corporation shows cost of goods sold $4,861.1 million and operating expenses (including depreciation expense of $1,239 million) $10,630.9 million. The comparative balance sheet for the year shows that inventory increased $17.2 million, prepaid expenses increased $57.5 million, accounts payable (merchandise suppliers) increased $135.2 million, and accrued expenses payable increased $163.3 million.

Using the direct method, compute (a) cash payments to suppliers and (b) cash payments for operating expenses.