Data for Whitlock Company are presented in P13-3A. In P13-3A, The income statement of Whitlock Company is presented here.

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 depreciation expense of $70,000.

Instructions
Prepare the operating activities section of the statement of cash flows using the directmethod.

WHITLOCK COMPANY Income Statement For the Year Ended November 30, 2015 Sales revenue Cost of goods sold $7,700,000 Beginning inventory Purchases Goods available for sale Ending inventory $1,900,000 4,400,000 6,300,000 1,400,000 Total cost of goods sold Gross profit Operating expenses Net income 4,900,000 2,800,000 1,150,000 $1,650,000