P13-3A Prepare the operating activities section - indirect method
The income statement of Whitlock Company is presented here.
	WHITLOCK COMPANY
	Income Statement
	For the Year Ended November 30, 2015
	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 depreciation expense of $70,0000.
Instructions
Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2015,
for Whitlock Company, using the indirect method.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .
	WHITLOCK COMPANY
	Partial Statement of Cash Flows
	For the Year Ended November 30, 2015
	Cash flows from operating activities
	Net income				Value
	Adjustments to reconcile net income to
	net cash provided by operating activities
		Depreciation expense		Value
		Increase in accounts receivable		Value
		Decrease in inventory		Value
		Increase in prepaid expenses		Value
		Decrease in accounts payable		Value
		Decrease in accrued expenses payable		Value	?
		Net cash provided by operating activities			?
After you have completed the requirements of P13-3A, consider the additional question.
Answers are on the other tab in this file.
1.	Assume that in 2015, accounts receivable increased $180,000, inventory decreased $475,000; prepaid expenses decreased $50,000, and
	accrued expenses payable increased $75,000. Show the impact of these changes on the operating activities section of the statement of
	cash flows.