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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.
At December 31, 2017, Christel Madan determines that its ending inventory is $64,500. Compute Christel Madan's 2017 gross profit
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