Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

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.

WHITLOCK COMPANY
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)

--------------------------------------------------------------------------

Cash from Operations $3,81,700

-------------------------------------------------------------------------