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.If cost of goods sold was $440 million,its cash outflows to inventory suppliers totaled:

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The cash outflows to inventory suppliers can be calculated by adjusting the cost of goods sold (COGS) for the changes in inventory and accounts payable. The increase in inventory ($10 million) means that more inventory was purchased than was sold, and the decrease in accounts payable ($3 million) indicates that cash payments to suppliers exceeded the purchases on account. Therefore, the cash outflows to suppliers are COGS + Increase in Inventory - Decrease in Accounts Payable = $440 million + $10 million - (-$3 million) = $453 million.