The income statement of Whitlock Company is presented here.
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WHITLOCK COMPANY Income Statement For the Year Ended November 30, 2014 |
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Sales revenue |
$7,700,000 |
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Cost to goods sold |
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Beginning inventory |
$1,900,000 |
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Purchases |
4,400,000 |
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Goods available for sale |
6,300,000 |
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Ending inventory |
1,400,000 |
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Total cost of goods sold |
4,900,000 |
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Gross profit |
2.800.000 |
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Operating expenses |
1,150,000 |
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Net income |
1,650,000 |
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Additional information:
- Accounts receivable increased $200,000 during the year, and inventory decreased $500,000.
- Prepaid expenses increased $150,000 during the year.
- Accounts payable to suppliers of merchandise decreased $340,000 during the year.
- Accrued expenses payable decreased $100,000 during the year.
- Operating expenses include depreciation expense of $70,000.
Instructions
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.