Question

The income statement of Whitlock Company is presented here. WHITLOCK COMPANY Income Statement For the Year Ended November 30, 2020 Sales revenue $7,431,800 Cost of goods sold Beginning inventory $1,880,900 Purchases 4,343,000 Goods available for sale 6,223.900 Ending inventory 1,490,000 Total cost of goods sold 4,733.900 Gross profit 2,697,900 Operating expenses 1,144.400 Net income $1,553,500 Additional information: 1. Accounts receivable increased $190,300 during the year, and inventory decreased $390,900. 2. Prepaid expenses increased $169,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $340,300 during the year. 4. Accrued expenses payable decreased $102.600 during the year. 5. Operating expenses include depreciation expense of $81,900.

Answer 1

WHITELOCK COMPANY Partial statement of Cash flows For Year Ended November 30,2020 Cash flow from Operating Activities: Collection From customers $7,241,500 Less:Cash Payments To suppliers For Operating Expemnses $5,465,100 S 271,604 $5,736,704 $1.504.796 Net Cash Provided by operating Activities Working Notes Collection From customer Sales revenue Less: Accounts Receivables Increased Collection From customer $7,431,800 $ 190,300 $7.241.500

To Suppliers Cost of goods sold add: accounts Payable Decresed Less: Inventory decresed $4,733,900 $ 340,300 $ 390.900 $5,465,100 $1,062,500 For operating expenses Operating expensse ($1,144,400-$81,900) Add Prepaid Expenses Increased Accured Expenses Decreased $ 169,000 $ 102,600 $ 271,604