Concept explainers
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
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.
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