Data for Whitlock Company are presented in P17-3A.

Instructions

Prepare the operating activities section of the statement of cash flows using the direct method.

Transcribed Image Text:

WHITLOCK COMPANY Income Statement For the Year Ended November 30, 2017 Sales revenue $7,700,000 Cost of goods sold Beginning inventory Purchases $1,900,000 4,400,000 Goods available for sale 6,300,000 1,400,000 Ending inventory Total cost of goods sold 4,900,000 Gross profit Operating expenses 2,800,000 1,150,000 Net income $1,650,000