The income statement for Rhino Company for the current year ended June 30 is as follows:

1	Sales		$444,100.00
2	Cost of merchandise sold		155,600.00
3	Gross profit		$288,500.00
4	Operating expenses:
5	Depreciation expense	$37,510.00
6	Other operating expenses	114,580.00
7	Total operating expenses		152,090.00
8	Income before income tax		$136,410.00
9	Income tax expense		40,010.00
10	Net income		$96,400.00

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)	$37,180	$31,240
Inventories	91,040	79,880
Prepaid expenses	14,990	15,950
Accounts payable (merchandise creditors)	68,570	63,000
Accrued expenses payable (operating expenses)	19,010	20,840
Income tax payable	3,470	3,470

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. Deduct, Add or colons (:) will automatically appear if required.

Rhino Company

Cash Flows from Operating Activities Section

For the Year Ended June 30

1	Cash flows from operating activities:
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