WHITLOCK COMPANY Income Statement For the Year Ended November 30, 2017 Sales revenue Cost of goods sold $7,504,800 Beginning inventory $1,958,500 4,382,300 6,340,800 1,364,400 Purchases Goods available for sale Ending inventory Total cost of goods sold Gross profit Operating expenses Net income 4.976,400 2,528,400 1.158,000 $1,370,400 Additional information: 1. Accounts receivable increased $199,600 during the year, and inventory decreased $594,100. 2. Prepaid expenses increased $180,300 during the year Accounts payable to suppliers of merchandise decreased $343,200 during the year. 4. Accrued expenses payable decreased $104,300 during the year. 5. Operating expenses include depreciation expense of $80,800. Prepare the operating activities section of the statement of cash flows using the direct method