Suppose the 2022 income statement for McDonald's Corporation shows cost of goods sold $4,878.8 million and operating expenses (including depreciation expense of $1,226.0 million) $10,671.1 million. The comparative balance sheets for the year show that inventory decreased $7.4 million, prepaid expenses increased $43.4 million, accounts payable (inventory suppliers) increased $19.1 million, and accrued expenses payable increased $195.8 million. Using the direct method, compute (a) cash payments to suppliers and (b) cash payments for operating expenses. (Enter answers in millions to 1 decimal place, e.g. 527.5.) Cash payments to suppliers Cash payments for operating expenses $ $ million million

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Suppose the 2022 income statement for McDonald's Corporation shows cost of goods sold $4,878.8 million and operating expenses
(including depreciation expense of $1,226.0 million) $10,671.1 million. The comparative balance sheets for the year show that
inventory decreased $7.4 million, prepaid expenses increased $43.4 million, accounts payable (inventory suppliers) increased $19.1
million, and accrued expenses payable increased $195.8 million.
Using the direct method, compute (a) cash payments to suppliers and (b) cash payments for operating expenses. (Enter answers in
millions to 1 decimal place, e.g. 527.5.)
Cash payments to suppliers
$
Cash payments for operating expenses $
million
million
Transcribed Image Text:Suppose the 2022 income statement for McDonald's Corporation shows cost of goods sold $4,878.8 million and operating expenses (including depreciation expense of $1,226.0 million) $10,671.1 million. The comparative balance sheets for the year show that inventory decreased $7.4 million, prepaid expenses increased $43.4 million, accounts payable (inventory suppliers) increased $19.1 million, and accrued expenses payable increased $195.8 million. Using the direct method, compute (a) cash payments to suppliers and (b) cash payments for operating expenses. (Enter answers in millions to 1 decimal place, e.g. 527.5.) Cash payments to suppliers $ Cash payments for operating expenses $ million million
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