The income statement of Whitlock Company is presented here.

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.

Instructions

Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2017, for Whitlock Company, using the indirect method.

Transcribed Image Text:

WHITLOCK COMPANY Income Statement For the Year Ended November 30, 2017 Sales revenue $7,700,000 Cost of goods sold Beginning inventory Purchases $1,900,000 4,400,000 Goods available for sale 6,300,000 1,400,000 Ending inventory Total cost of goods sold 4,900,000 Gross profit Operating expenses 2,800,000 1,150,000 Net income $1,650,000