Financial and Managerial Accounting: P13-3A The income statement of Whitlock Company

Financial and Managerial AccountingP13-3A Prepare the Operating Activities Section - Indirect Method
The income statement of Whitlock Company is presented here.
Income Statement
For the Year Ended November 30, 2017
Sales revenue 7,700,000
Cost of goods sold
    Beginning inventory 1,900,000
    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 1,650,000
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.
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.
Powered by