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Problem 17-03A (Video) Your answer is partially correct. Try again. The income statement of Whitlock Company is presented here. WHITLOCK COMPANY Income Statement For the

Problem 17-03A (Video)

Your answer is partially correct. Try again.

The income statement of Whitlock Company is presented here.

WHITLOCK COMPANY Income Statement For the Year Ended November 30, 2020

Sales revenue

$7,400,000

Cost of goods sold
Beginning inventory

$1,800,000

Purchases

4,300,000

Goods available for sale

6,100,000

Ending inventory

1,300,000

Total cost of goods sold

4,800,000

Gross profit

2,600,000

Operating expenses

1,000,000

Net income

$1,600,000

Additional information:

1. Accounts receivable increased $190,000 during the year, and inventory decreased $500,000.
2. Prepaid expenses increased $165,000 during the year.
3. Accounts payable to suppliers of merchandise decreased $330,000 during the year.
4. Accrued expenses payable decreased $100,000 during the year.
5. Operating expenses include depreciation expense of $80,000.

Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2020, for Whitlock Company, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

WHITLOCK COMPANY Partial Statement of Cash Flows

For the Month Ended November 30, 2020November 30, 2020For the Year Ended November 30, 2020

Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash

Net Income Depreciation Expense Decrease in Inventory Increase in Inventory Decrease in Accounts Receivable Increase in Accounts Receivable Decrease in Accrued Expenses Payable Increase in Accrued Expenses Payable Increase in Prepaid Expenses Decrease in Prepaid Expenses Decrease in Accounts Payable Increase in Accounts Payable

$

Adjustments to reconcile net income to

Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash

Net Income Depreciation Expense Decrease in Inventory Increase in Inventory Decrease in Accounts Receivable Increase in Accounts Receivable Decrease in Accrued Expenses Payable Increase in Accrued Expenses Payable Increase in Prepaid Expenses Decrease in Prepaid Expenses Decrease in Accounts Payable Increase in Accounts Payable

$

Net Income Depreciation Expense Decrease in Inventory Increase in Inventory Decrease in Accounts Receivable Increase in Accounts Receivable Decrease in Accrued Expenses Payable Increase in Accrued Expenses Payable Increase in Prepaid Expenses Decrease in Prepaid Expenses Decrease in Accounts Payable Increase in Accounts Payable

Net Income Depreciation Expense Decrease in Inventory Increase in Inventory Decrease in Accounts Receivable Increase in Accounts Receivable Decrease in Accrued Expenses Payable Increase in Accrued Expenses Payable Increase in Prepaid Expenses Decrease in Prepaid Expenses Decrease in Accounts Payable Increase in Accounts Payable

Net Income Depreciation Expense Decrease in Inventory Increase in Inventory Decrease in Accounts Receivable Increase in Accounts Receivable Decrease in Accrued Expenses Payable Increase in Accrued Expenses Payable Increase in Prepaid Expenses Decrease in Prepaid Expenses Decrease in Accounts Payable Increase in Accounts Payable

Net Income Depreciation Expense Decrease in Inventory Increase in Inventory Decrease in Accounts Receivable Increase in Accounts Receivable Decrease in Accrued Expenses Payable Increase in Accrued Expenses Payable Increase in Prepaid Expenses Decrease in Prepaid Expenses Decrease in Accounts Payable Increase in Accounts Payable

Net Income Depreciation Expense Decrease in Inventory Increase in Inventory Decrease in Accounts Receivable Increase in Accounts Receivable Decrease in Accrued Expenses Payable Increase in Accrued Expenses Payable Increase in Prepaid Expenses Decrease in Prepaid Expenses Decrease in Accounts Payable Increase in Accounts Payable

Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash

$

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