A company purchases its inventory from suppliers on account. During the year, its inventory account increased by $17 million and its accounts payable to suppliers decreased by $5 million. If cost of goods sold was $520 million, its cash outflows to inventory suppliers totaled:

$542 million

Explanation:

The following can be gotten from the question:

The increase in inventory = $17 million

The decrease in the accounts payable = $5 million

The cost of goods sold = $520 million

Inventory Purchased = $520 million + $17 million = $537 million.

The cash outflows to inventory suppliers will be the inventory bought plus the decrease in the accounts payable. This will be:

= $537 million + $5 million

= $542 million