A recent income statement for McDonalds Corporation shows cost of goods sold $4,852.7 million and operating expenses

Question:

A recent income statement for McDonald’s shows cost of goods sold $4,852.7 million and operating expenses (including depreciation expense of $1,201 million) $10,671.5 million. The comparative for the year shows that inventory increased $18.1 million, prepaid expenses increased $56.3 million, (merchandise suppliers) increased $136.9 million, and accrued expenses payable increased $160.9 million.
Instructions
Using the direct method, compute
(a) Cash payments to suppliers and
(b) Cash payments for operating expenses.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...