Question
The income statement for Rhino Company for the current year ended June 30 is as follows: 1 Sales $440,800.00 2 Cost of merchandise sold 154,500.00
The income statement for Rhino Company for the current year ended June 30 is as follows: 1 Sales $440,800.00 2 Cost of merchandise sold 154,500.00 3 Gross profit $286,300.00 4 Operating expenses: 5 Depreciation expense $39,000.00 6 Other operating expenses 115,110.00 7 Total operating expenses 154,110.00 8 Income before income tax $132,190.00 9 Income tax expense 40,330.00 10 Net income $91,860.00 The balances of selected accounts at the beginning and the end of the current year are as follows: End Beginning of Year of Year Accounts receivable (net) $36,340 $30,940 Inventories 92,890 80,000 Prepaid expenses 15,580 16,440 Accounts payable (merchandise creditors) 67,180 62,180 Accrued expenses payable (operating expenses) 20,230 21,610 Income tax payable 3,990 3,990 Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the direct method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow, if required.
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