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Suppose a recent income statement for McDonalds Corporation shows cost of goods sold $4,832.6 million and operating expenses (including depreciation expense of $1,224 million) $10,649.8
Suppose a recent income statement for McDonalds Corporation shows cost of goods sold $4,832.6 million and operating expenses (including depreciation expense of $1,224 million) $10,649.8 million. The comparative balance sheet for the year shows that inventory increased $17.3 million, prepaid expenses increased $55.6 million, accounts payable (merchandise suppliers) increased $135.9 million, and accrued expenses payable increased $159.7 million.
Using the direct method, compute (a) cash payments to suppliers and (b) cash payments for operating expenses.
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