Suppose the 2014 income statement for McDonalds Corporation shows cost of goods sold $5,178.0 million and operating

Question:

Suppose the 2014 income statement for McDonald’s shows cost of goods sold $5,178.0 million and operating expenses (including depreciation expense of $1,216.2 million) $10,725.7 million. The comparative for the year shows that inventory decreased $5.3 million, prepaid expenses increased $42.2 million, (merchandise suppliers) increased $15.6 million, and accrued expenses payable increased $199.8 million.
Instructions
Using the direct method, compute
(a) Cash payments to suppliers and
(b) Cash payments for operating expenses.

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