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					$354,270
Cost of goods sold					201,160
Gross profit					$153,110
Operating expenses:
	Depreciation expense		$27,190
	Other operating expenses		71,870
		Total operating expenses			99,060
Income before income tax					$54,050
Income tax expense					14,990
Net income					$39,060

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)	$(7,850)
Inventories	2,730
Prepaid expenses	(2,620)
Accounts payable (merchandise creditors)	(5,590)
Accrued expenses payable (operating expenses)	780
Income tax payable	(1,870)

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		$