Cash Flows from Operating ActivitiesDirect Method The income statement for Rhino Company for the current year ended June 30 and balances of selected accounts at the beginning and the end of the year are as follows: $445,500 (154,000) $291,500 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other operating expenses Total operating expenses $38,500 115,280 Income before income tax (153,780) $137,720 (39,600) $98,120 Income tax expense Net income End of Year Beginning of Year Accounts receivable (net) $36,300 $31,240 Inventories 92,400 80,300 Prepaid expenses 14,520 Accounts payable (merchandise creditors) 67,540 15,840 62,700 20,900 Accrued expenses payable (operating expenses) 19,140 Income tax payable 4,400 4,400 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. Rhino Company Cash Flows from Operating Activities Section For the year ended on June 30 Cash flows from operating activities: Cash received from customers Cash payments for merchandise Cash payments for operating expenses Cash payments for income taxes LIU Ulleur Deynny U11 Cul Accounts receivable (net) $31,240 $36,300 92,400 Inventories 80,300 14,520 15,840 Prepaid expenses Accounts payable (merchandise creditors) 62,700 67,540 19,140 Accrued expenses payable (operating expenses) 20,900 4,400 Income tax payable 4,400 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. Rhino Company Cash Flows from Operating Activities Section For the year ended on June 30 Cash flows from operating activities: Cash received from customers Cash payments for merchandise Cash payments for operating expenses Cash payments for income taxes Net cash flow from operating activities