Derive cost of goods sold from data in the statement of cash flows. The section show ing cash flow from operations, using the indirect method, for Ann Taylor Stores reported an increase in inventories of $5.7 million during Year 13. It reported also that the balance in accounts payable for inventories increased by S5.9 million. The direct method would show cash pa) ments for merchandise inventory purchased of $646.9 million. Compute the cost of goods sold for Year 13.