Question
The income statement of Whitlock Company is presented here. WHITLOCK COMPANY Income Statement For the Year Ended November 30, 2020 Sales revenue $7,465,900 Cost of
The income statement of Whitlock Company is presented here.
| WHITLOCK COMPANY Income Statement For the Year Ended November 30, 2020 | ||||
| Sales revenue | $7,465,900 | |||
| Cost of goods sold | ||||
| Beginning inventory | $1,868,500 | |||
| Purchases | 4,450,600 | |||
| Goods available for sale | 6,319,100 | |||
| Ending inventory | 1,331,800 | |||
| Total cost of goods sold | 4,987,300 | |||
| Gross profit | 2,478,600 | |||
| Operating expenses | 1,120,500 | |||
| Net income | $1,358,100 | |||
Additional information:
| 1. | Accounts receivable increased $205,900 during the year, and inventory decreased $536,700. | |
| 2. | Prepaid expenses increased $179,800 during the year. | |
| 3. | Accounts payable to suppliers of merchandise decreased $345,700 during the year. | |
| 4. | Accrued expenses payable decreased $105,800 during the year. | |
| 5. | Operating expenses include depreciation expense of $95,300. |
Prepare the operating activities section of the statement of cash flows using the direct 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 November 30, 2020For the Year Ended November 30, 2020For the Month 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 | ||
| Cash Receipts from Dividend RevenueFor Salaries and WagesCash Receipts from CustomersTo SuppliersFor Operating ExpensesFor Income Taxes | $ | |
| AddLess cash payments: | ||
| To SuppliersFor Operating ExpensesFor Salaries and WagesCash Receipts from CustomersCash Receipts from Dividend RevenueFor Income Taxes | $ | |
| For Operating ExpensesCash Receipts from CustomersTo SuppliersCash Receipts from Dividend RevenueFor Salaries and WagesFor Income Taxes | ||
| 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 | $ | |
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