The 2006 income statement for McDonald's Corporation shows cost of goods sold \(\$ 5,349.7\) million and operating expenses (including depreciation expense of \(\$ 1,249.9\) million) \(\$ 11,791.6\) million. The comparative balance sheet for the year shows that inventory increased \(\$ 4.7\) million, prepaid expenses decreased \(\$ 204.5\) million, accounts payable (merchandise suppliers) increased \(\$ 156.1\) million, and accrued expenses payable increased \(\$ 37\) million.

Instructions:

Using the direct method, compute

(a) cash payments to suppliers and

(b) cash payments for operating expenses.