The income statement for McDonald's Corporation shows cost of goods sold $6,175.6 million and operating expenses (including depreciation expense of $1,214.1 million) $18,907.6 million. The comparative balance sheet for the year shows that inventory increased $12.9 million, prepaid expenses increased $102.9 million, accounts payable (merchandise suppliers) decreased $44.6 million, and accrued expenses payable increased $162.4 million.
Instructions
Using the direct method, compute (a) cash payments to suppliers and (b) cash payments for operating expenses.

Question

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The Answer of The income statement for McDonald's Corporation shows cost of goods sold $6,175.6 million and operating expenses (including depreciation expense of $1,214.1 million) $18,907.6 million. The comparative balance sheet for the year shows that inventory increased $12.9 million, prepaid expenses increased $102.9 million, accounts payable (merchandise suppliers) decreased $44.6 million, and accrued expenses payable increased $162.4 million.
Instructions
Using the direct method, compute (a) cash payments to suppliers and (b) cash payments for operating expenses.

The Income Statement for McDonald's Corporation Shows Cost of Goods