Question: The section showing cash flow from operations, using the indirect method, for Taylor Stores reported an increase in inventories of $5.7 million during the year.

The section showing cash flow from operations, using the indirect method, for Taylor Stores reported an increase in inventories of $5.7 million during the year. It reported also that the balance in accounts payable for inventories increased by $5.9 million. The direct method would show cash payments for merchandise inventory purchased of $646.9 million. Compute Taylor’s cost of goods sold for the year.

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