Cash Flows from Operating ActivitiesDirect Method

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

Sales					$550,000
Cost of merchandise sold					312,300
Gross profit					$237,700
Operating expenses:
	Depreciation expense		$42,210
	Other operating expenses		111,580
		Total operating expenses			153,790
Income before income tax					$83,910
Income tax expense					23,270
Net income					$60,640

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)	$12,190*
Inventories	4,240
Prepaid expenses	4,060*
Accounts payable (merchandise creditors)	8,670*
Accrued expenses payable (operating expenses)	1,210
Income tax payable	2,910*

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:
Cash received from customers ----------------??	$
Cash payments for merchandise ----------------??	$
Cash payments for operating expenses -------------??
Cash payments for income taxes ---------------------??