The income statement of Whitlock Company is presented here. WHITLOCK COMPANY Income Statement For the Year Ended November 30, 2020 $7,700,000 Sales revenue Cost of goods sold Beginning inventory Purchases $1,900,000 4,400,000 Goods available for sale Ending inventory Total cost of goods sold 6,300,000 1,400,000 4,900,000 Gross profit Operating expenses 2,800,000 1,150,000 Net income $1,650,000 Additional information: 1. Accounts receivable increased $200,000 during the year, and inventory decreased $500,000. 2. Prepaid expenses increased $150,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $340,000 during the year. 4. Accrued expenses payable decreased $100,000 during the year. 5. Operating expenses include depreciation expense of $70,000. Prepare the operating activities section of the statement of cash flows using the direct method. (She 2. Prepaid expenses increased $150,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $340,000 during the year. 4. Accrued expenses payable decreased $100,000 during the year. 5. Operating expenses include depreciation expense of $70,000. Prepare the operating activities section of the statement of cash flows using the direct method. WHITLOCK COMPANY Partial Statement of Cash Flows For the Year Ended November 30 2020 Cash Flows from Operating Activities For Operating Expenses Add cash payments: ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2020 $970,000 Service revenue Operating expenses, excluding depreciation Depreciation expense Loss on disposal of plant assets Income before income taxes $624,000 60,000 16,000 700.000 270,000 Income tax expense 40.000 Net income $230,000 Zumbrunn's balance sheets contained the comparative data at December 31, shown below. 2020 2019 $65.000 Accounts receivable Accounts payable Income taxes payable $75,000 46,000 11.000 28 000 7.000 Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the direct method. ( ZUMBRUNN COMPANY Prepare the operating activities section of the statement of cash flows using the direct m ZUMBRUNN COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income 230000 Less cash payments: Increase in Accounts Receivable 10000 Increase in Accounts Payable 18000 12000 Net Cash Provided by Operating Activities 318000 LINKIT TE