9.

The income statement for Rhino Company for the current year ended June 30 is as follows:

1	Sales		$440,800.00
2	Cost of merchandise sold		154,500.00
3	Gross profit		$286,300.00
4	Operating expenses:
5	Depreciation expense	$39,000.00
6	Other operating expenses	115,110.00
7	Total operating expenses		154,110.00
8	Income before income tax		$132,190.00
9	Income tax expense		40,330.00
10	Net income		$91,860.00

The balances of selected accounts at the beginning and the end of the current year are as follows:

	End	Beginning
	of Year	of Year
Accounts receivable (net)	$36,340	$30,940
Inventories	92,890	80,000
Prepaid expenses	15,580	16,440
Accounts payable (merchandise creditors)	67,180	62,180
Accrued expenses payable (operating expenses)	20,230	21,610
Income tax payable	3,990	3,990

Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the direct method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow, if required.

Amount DescriptionsCash payments for income taxesCash payments for merchandiseCash payments for operating expensesCash received from customersDecrease in accounts payableDecrease in accounts receivableDecrease in accrued expenses payableDecrease in inventoriesDecrease in prepaid expensesDepreciationIncrease in accounts payableIncrease in accounts receivableIncrease in accrued expenses payableIncrease in inventoriesIncrease in prepaid expensesNet cash flow from operating activitiesNet cash flow used for operating activities