Sales Cash Flows from Operating Activities-Direct 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 5445,500 Cost of merchandise sold 154,000 Gross profit $291,500 Operating expenses Depreciation expense $38,500 Other operating expenses 115,280 Total operating expenses 153,780 Income before income tax $137,720 Income tax expense 39,600 Net income $98,120 Accounts receivable (net) Inventones End of Year Beginning of Year $36,300 $31,240 92,400 80,300 14,520 15,840 67,540 62,700 Prepaid expenses Accounts payable (merchandise creditors) Accrued expenses payable operating expenses) Income tax payable 19,140 20,900 4,400 4,400 Triventes 19200 300 Prepaid expenses 14,520 15,840 Accounts payable (merchandise creditors) 67,540 62,700 Accrued expenses payable (operating expenses) 19,140 20,900 Income tax payable 4,400 4,400 Prepare the Cash Flows from Operating Activities section of the statement of cash tows, using the direct method. Use the minus sign to indicato cash outflows, 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 low from operating activities