Compute the cash payments to suppliers

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Question - Suppose the 2022 income statement for McDonald's Corporation shows cost of goods sold $4,861.1 million and operating expenses (including depreciation expense of $1,239.0 million) $10,630.9 million. The comparative balance sheets for the year show that inventory decreased $5.2 million, prepaid expenses increased $44.5 million, accounts payable (inventory suppliers) increased $15.2 million, and accrued expenses payable increased $203.3 million. Using the direct method, compute (a) cash payments to suppliers and (b) cash payments for operating expenses.

Reference no: EM133105100

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