Question: Analyzing changes in inventory and accounts payable. Ericsson, a Swedish firm specializing in communication networks, reported a balance in Inventories of SEK21,470 million at the

Analyzing changes in inventory and accounts payable. Ericsson, a Swedish firm specializing in communication networks, reported a balance in Inventories of SEK21,470 million at the beginning of 2007 and SEK22,475 million at the end of 2007. It also reported a balance in Trade (Accounts) Payable of SEK18,183 million at the beginning of 2007 and SEK17,427 million at the end of 2007. During 2007, Ericsson reported SEK114,059 million in Cost of Sales. Compute the amount of cash paid to suppliers of inventory during 2007 for purchases made on account. Assume that all of Ericsson’s inventory purchases are made on account. Ericsson applies IFRS, and reports its results in millions of Swedish kronor (SEK).

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