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. WHITLOCK COMPANY 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.
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.