Target Corporation's 2019 financial statements included the following items (dollars in millions):

a. Assuming that accounts payable refers only to inventory suppliers, compute the cash payments made by Target during 2019 to inventory suppliers.
b. Review the changes in the current accounts above and comment on the cash flow implications to Target (i.e., did they help to increase or decrease cash flows?).

Transcribed Image Text:

INCOME STATEMENT: Cost of sales $54,864 STATEMENT OF CASH FLOWS (OPERATING SECTION): Increase in inventory 505 Increase in accounts payable 140