The income statement of Whitlock Company is presented here. WHITLOCK COMPANY Income Statement For the Year Ended November 30, 2020 Sales revenue       $7,588,000 Cost of goods sold             Beginning inventory   $1,924,100         Purchases   4,303,700         Goods available for sale   6,227,800         Ending inventory   1,334,300     Total cost of goods sold       4,893,500 Gross profit       2,694,500 Operating expenses       1,077,400 Net income       $1,617,100 Additional information: 1.   Accounts receivable increased $208,800 during the year, and inventory decreased $589,800. 2.   Prepaid expenses increased $167,900 during the year. 3.   Accounts payable to suppliers of merchandise decreased $343,500 during the year. 4.   Accrued expenses payable decreased $104,000 during the year. 5.   Operating expenses include depreciation expense of $83,600. Prepare the operating activities section of the statement of cash flows using the direct method.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question

The income statement of Whitlock Company is presented here.

WHITLOCK COMPANY
Income Statement
For the Year Ended November 30, 2020
Sales revenue      
$7,588,000
Cost of goods sold        
    Beginning inventory  
$1,924,100
   
    Purchases  
4,303,700
   
    Goods available for sale  
6,227,800
   
    Ending inventory  
1,334,300
   
Total cost of goods sold      
4,893,500
Gross profit      
2,694,500
Operating expenses      
1,077,400
Net income      
$1,617,100


Additional information:

1.   Accounts receivable increased $208,800 during the year, and inventory decreased $589,800.
2.   Prepaid expenses increased $167,900 during the year.
3.   Accounts payable to suppliers of merchandise decreased $343,500 during the year.
4.   Accrued expenses payable decreased $104,000 during the year.
5.   Operating expenses include depreciation expense of $83,600.


Prepare the operating activities section of the statement of cash flows using the direct method.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education