Suppose a recent income statement for McDonalds Corporation (USA) shows cost of goods sold $4,527.8 million and
Question:
Suppose a recent income statement for McDonald’s Corporation (USA) shows cost of goods sold $4,527.8 million and operating expenses (including depreciation expense of $1,120 million) $10,517.6 million. The comparative statements of financial position for the year show that inventory increased $17.1 million, prepaid expenses increased $65.3 million, accounts payable (merchandise suppliers) increased $139.6 million, and accrued expenses payable increased $190.6 million.
Instructions
Using the direct method, compute (a) cash payments to suppliers and (b) cash payments for operating expenses.
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Accounting Principles
ISBN: 978-1119419617
IFRS global edition
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt
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