The income statement for Rhino Company for the current year ended June 30 is as follows: 1 Sales $445,500.00 2 Cost of merchandise sold 154,000.00 3 Gross profit $291,500.00 4 Operating expenses: 5 Depreciation expense $38,500.00 6 Other operating expenses 115,280.00 7 Total operating expenses 153,780.00 8 Income before income tax $137,720.00 9 Income tax expense 39,600.00 10 Net income $98,120.00 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) $36,300 $31,240 Inventories 92,400 80,300 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