Exercise 12-12 Your answer is incorrect. Try again. Suppose the 2017 income stat

Question

Exercise 12-12 Your answer is incorrect. Try again. Suppose the 2017 income statement for McDonald's Corporation shows cost of goods sold $4,693.0 million and operating expenses (including depreciation expense of $1,264.0 million) $10,622.0 million. The comparative balance sheets for the year shows that inventory decreased $5.0 million, prepaid expenses increased $44.0 million, accounts payable (merchandise suppliers) increased $14.5 million, and accrued expenses payable increased $195.0 million. Using the direct method, compute (a) cash payments to suppliers and (b) cash payments for operating expenses (a) Cash payments to suppliers (b) Cash payments for operating expenses 47339 million 93659 million LINK TO TEXT

Explanation / Answer

a)

b)

Cost of goods sold $ 4,693.0 Less: Decrease in inventory $        (5.0) Material purchased during the year $ 4,688.0 Less: Increase in accounts payable $     (14.5) Cash payments to suppliers $ 4,673.5

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.