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: $376,310 213,670 $162,640 Sales Cost of merchandise sold Gross profit Operating expenses: Depreciation expense Other operating expenses Total operating expenses $28,880 76,340 Income before income tax Income tax expense 105,220 $57,420 15,930 $41,490 Net income Changes in the balances of selected accounts from the beginning to the end of the current year are as follows: Increase/Decreases Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Income tax payable $8,340* 2,900 2,700 5,931 830 1,990 Income tax payable us sign to diante cash outflows, 3. Prepare cash flow from Operating Activities section of the statement of cash flows using the direct method. Use the m cash payments, decreases in cathory negative adjustments Becker Industries Inc Cash Flows from Operating Activities Section For the year ended on June 10 Cash received from customers Cash payments for merchandise Cat erperang the ch c ived during the period, which acc o uld have an moacto Consider what accounts) would have an impact on determining de much o utinh during the end b. What does the direct method show about a company's cash flows from activities that is not shown using the indirect method the cash from operating activities Individua recendo he direct ed the cash less that reported in the cash flows from Operating Activities section The indirect method adjusts accrual basis net income for revenues anderen