The income statement of Whitlock Company is presented here. WHITLOCK COMPANY Income Statement For the Year Ended November 30, 2020 Sales revenue $ 7,504,800 Cost of goods sold Beginning inventory $ 1,958,500 Purchases 4,382,300 Goods available for sale 6,340.800 Ending inventory 1.364.400 Total cost of goods sold 4,976,400 Gross profit 2.528,400 Operating expenses 1,158,000 Net Income $ 1.370.400 Additional information: 1 2 3. Accounts receivable increased $ 199.600 during the year, and inventory decreased $ 594, 100. Prepaid expenses increased $ 180,300 during the year. Accounts payable to suppliers of merchandise decreased $ 343,200 during the year. Accrued expenses payable decreased $ 104 300 during the year. Operating expenses include depreciation expense of $ 80,800. 4 5. Prepare the operating activities section of the statement of cash flows using the direct method. (Show amounts that decrease cash with either a-sign e g. -15,000 or in parenthesis eg. (15,000).) WHITLOCK COMPANY Partial Statement of Cash Flows + V cash payments: