Calculator Print Item eBook Cash Flows from Operating Activities-Direct Method The income statement of Booker T Industries Inc. for the current year ended June 30 is as follows Sales $577,760 Cost of goods sold 328,060 Gross profit $249,700 Operating expenses $44,340 Other operating expenses 117,210 Total operating expenses 161,550 Income before income tax $88,150 Income tax expense 24,450 $63,700 Net income Changes in the balances of selected accounts from the beginning to the end of the current year are as follows: $(12,800) Accounts receivable (net) 4,460 Inventories (4,270) Prepaid expenses (9,110) Accounts payable (merchandise creditors) 1,270 Accrued expenses payable (operating expenses) Previous Next Check My Work 5 more Check My Work uses remaining 11:31 AM Calculator eBook Print Item Accounts payable (merchandise creditors) (9,110) Accrued expenses payable (operating expenses) 1,270 Income tax payable (3,060) a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the direct method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Booker T Industries Inc. Cash Flows from Operating Activities Section For the year ended on June 30 Cash flows from operating activities: Net cash flow from operating activities b. What does the direct method show about a company's cash flows from operating activities that is not shown using the indirect method? the cash received less the cash payments is the net cash flow from operating activities. Individual cash receipts and With the KPrevious Next Check My Work 5 more Check My Work uses remaining 11:32 AM rch 99+ 5/28/2019