Schneider Inc.purchases its inventory from suppliers on account.During the year,its Inventory account increased by $10 million and its accounts payable to suppliers decreased by $3 million.Cost of goods sold was $440 million,its cash outflows to inventory suppliers totaled:

Question

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The increase in inventory of $10 million means that Schneider Inc. purchased $10 million more inventory than it sold during the year. As the cost of goods sold was $440 million, the purchases of inventory during the year would have been $440 million + $10 million = $450 million.

The decrease in accounts payable to suppliers of $3 million means that Schneider Inc. paid $3 million less to suppliers during the year than it had accrued in accounts payable. Therefore, its cash outflows to inventory suppliers would have been $450 million + $3 million = $453 million.

Hence, the answer is A) $453 million.