The income statement of Whitlock Company is presented here. WHITLOCK COMPANY Income Statement For the Year Ended November 30, 2020 Sales revenue $7,700,000 Cost of goods sold Beginning inventory 51.900,000 Purchases 4,400,000 Goods available 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 51.650.000 Additional information 1 2 3 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. 5 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 eg.-15.000 or in parenthesis es (15,000.) WHITLOCK COMPANY Partial Statement of Cash Flows For the Year Ended November 30, 2020 Cash Flows from Operating Activities 1650000 Net Income Adjustments to reconcile net income to NetCash Provided by Operating Activities Depreciation Expense $ 700000 Increase in Accounts Receivable Decrease in twentory 500000 150000 Increase in Prepaid Expenses Decrease in Accounts Payable Decrease in Accrued Expenses Payable 340000 100000 410000 NetCash Provided by Operating Activities $ 2060000