*E14-12 The 2004 income statement for McDonald’s Corporation shows cost of goods sold

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The 2004 income statement for McDonald’s Corporation shows cost of goods sold
$4,852.7 million and operating expenses (including depreciation expense of $1,201 million)
$10,671.5 million. The comparative balance sheet for the year shows that inventory increased
$18.1 million, prepaid expenses increased $56.3 million, accounts payable (merchandise suppliers)
increased $136.9 million, and accrued expenses payable increased $160.9 million.

Instructions
Using the direct method, compute (a) cash payments to suppliers and (b) cash payments for operating
expenses.