P17.3A Prepare the operating activities section-indirect methodThe income statement of Whitlock Company is presented here.Sales revenueCost of goods sold1.2.3.4.5.Beginning inventoryPurchasesAdditional information:WHITLOCK COMPANYIncome StatementFor the Year Ended November 30, 2020Goods available for saleEnding inventoryTotal cost of goods soldGross profitOperating expensesNet incomeAccounts receivable increased $200,000 during the year, and inventory decreased $500,000.Prepaid expenses increased $150,000 during the year.Accounts payable to suppliers of merchandise decreased $340,000 during the year.Accrued expenses payable decreased $100,000 during the year.Operating expenses include depreciation expense of $70,0000.WHITLOCK COMPANYPartial Statement of Cash FlowsFor the Year Ended November 30, 2020Cash flows from operating activities$1,900,0004,400,0006,300,0001,400,000InstructionsPrepare the operating activities section of the statement of cash flows for the year ended November 30, 2020,for Whitlock Company, using the indirect method.NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?".Net incomeAdjustments to reconcile net income tonet cash provided by operating activitiesDepreciation expenseIncrease in accounts receivableDecrease in inventoryIncrease in prepaid expensesDecrease in accounts payableDecrease in accrued expenses payableNet cash provided by operating activities$7,700,0004,900,0002,800,0001,150,0001,650,000ValueValueValueValueValueValueValue??

Cash flows statement is prepared by the organizations to know about the cash flows in the business.…

nue ods sold ng inventory es available for sale inventory of goods sold it expenses $1,900,000 4,400,000 6,300,000 1,400,000 $7,700,000 4,900,000 2,800,000 1,150,000 1,650,000 on: receivable increased $200,000 during the year, and inventory decreased $500,000.

nue ods sold ng inventory es available for sale inventory of goods sold it expenses $1,900,000 4,400,000 6,300,000 1,400,000 $7,700,000 4,900,000 2,800,000 1,150,000 1,650,000 on: receivable increased $200,000 during the year, and inventory decreased $500,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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