The income statement of Whitlock Company is presented here. WHITLOCK COMPANY Inc
ID: 2380204 • Letter: T
Question
The income statement of Whitlock Company is presented here.
Income Statement
For the Year Ended November 30, 2014 Sales revenue
$7,788,300 Cost of goods sold
Beginning inventory
$1,879,400
Purchases
4,486,700
Goods available for sale
6,366,100
Ending inventory
1,322,700
Total cost of goods sold
5,043,400 Gross profit
2,744,900 Operating expenses
1,034,800 Net income
$1,710,100 The income statement of Whitlock Company is presented here. Additional information: Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2014, for Whitlock Company, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Explanation / Answer
Cash from operating activities
Net Income $1,710,100
Add: depreciation $84,800
Changes in Working capital
Less: Increase in Receivables ($251,300)
Add: Decrease in Inventory $556,700
Less: Increase in Prepaid Expenses ($150,100)
Less: Decrease in Payales ($349,500)
Less:Decrease in Accrued Expense ($105,600)
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Cash from Operations $3,81,700
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