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1. The 2009 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 sheet for the year shows 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.
research the history of process costing in the united states. when did it begin to be used in manufacturing companies?
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