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The income statement of Whitlock Company is presented here WHITLOCK COMPANY Inco

ID: 2337265 • Letter: T

Question

The income statement of Whitlock Company is presented here WHITLOCK COMPANY Income Statement For the Year Ended November 30, 2017 Sales revenue $7,459,100 Cost of goods sold $1,986,400 Beginning inventory Purchases Goods available for sale Ending inventory 6,357,600 1,444,200 4,913,400 2,545,700 Total cost of goods sold Gross proft Operating expenses Net income $1,423,200 Additional information 1. Accounts receivable increased $198,900 during the year, and inventory decreased $542,2 2. Prepaid expenses increased $180,000 during the year 3. Accounts payable to suppliers of merchandise decreased $334,000 during the year 4. Accrued expenses payable decreased $108,500 during the year S. Operating expenses include depreciation expense of $98,000 Prepare the operating activities section of the statement of cash flows using the direct metho WHITLOCK COMPANY Partial Statement of Cash Flows DYNE

Explanation / Answer

Whitlock Company

Whitlock Company

Partial Statement of Cash Flows (Direct Method)

For the year ended Nov 30, 2017

Cash flows from operating activities:

Cash receipts from customers

$7,260,200

Cash paid to suppliers

($4,705,200)

cash operating expenses

($1,313,000)

cash disbursements

($6,018,200)

Net cash provided by operating activities

$1,242,000

sales

$7,459,100

Less: increase in accounts receivable

($198,900)

Cash received from customers

$7,260,200

Cost of goods sold

$4,913,400

Less: Decrease in inventories

($542,200)

Add: decrease in accounts payable

$334,000

Cash paid to suppliers

$4,705,200

operating expenses

$1,122,500

Add: increase in prepaid expenses

$180,000

Add: decrease in accrued expenses

$108,500

Less: Depreciation expense

($98,000)

Whitlock Company

Partial Statement of Cash Flows (Direct Method)

For the year ended Nov 30, 2017

Cash flows from operating activities:

Cash receipts from customers

$7,260,200

Cash paid to suppliers

($4,705,200)

cash operating expenses

($1,313,000)

cash disbursements

($6,018,200)

Net cash provided by operating activities

$1,242,000