Cash Flows from Operating ActivitiesDirect Method

The income statement of Kodiak Industries Inc. for the current year ended June 30 is as follows:

Sales					$349,010
Cost of merchandise sold					198,170
Gross profit					$150,840
Operating expenses:
	Depreciation expense		$26,780
	Other operating expenses		70,800
		Total operating expenses			97,580
Income before income tax					$53,260
Income tax expense					14,780
Net income					$38,480

Changes in the balances of selected accounts from the beginning to the end of the current year are as follows:

	Increase/ Decrease*
Accounts receivable (net)	$7,730*
Inventories	2,690
Prepaid expenses	2,580*
Accounts payable (merchandise creditors)	5,500*
Accrued expenses payable (operating expenses)	770
Income tax payable	1,850*

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, and decreases in cash. Kodiak Industries Inc. Cash Flows from Operating Activities Section For the year ended on June 30 Cash flows from operating activitie Cash received from customers 356740 Deduct cash payments for mer Deduct cash payments for ope Deduct cash payments for incc Net cash flow from operating activities