P13-3A. The income statement of Whitlock Company is presented here.

Whitlock Company

Income Statement

For the Year ended November 30, 2015

Sales Revenue 7,700,000

Cost of goods sold 1,900,000

Beginning Inventory Purchases 4,400,000

Goods Availabe for sale 6,300,000

Ending inventory 1,400,000

Total cost of goods sold 4,900,000

Gross profit 2,800,000

Operating Expenses 1,150,000

Net Income 1,650,000

Additional information:

Accounts receivable increased $200,000 during the year, and inventory decreased $500,000.

Prepaid expenses increased $150,000 during the year.

Accounts payable to suppliers of merchandise decreased $340,000 during the year.

Accrued expenses payable decreased $100,000 during the year.

Operating expenses include depreciation expense of $70,000.

Instructions

Prepare the operating activities section of the statement of cash ows for the year ended November 30, 2015, for Whitlock Company, using the indirect method.