The income statement of Booker T Industries Inc. for the current year ended June 30 is as follows: 1 Sales $509,600.00 292,100.00 $217,500.00 2 Cost of goods sold 3. Gross profit Operating expenses Depreciation expense Other operating expenses Total operating expenses $38,210.00 104,300.00 7 142,510.00 Instructions $74,990,00 8 Income before income tax 9 Income tax expense 10 Net income 22,110,00 $52,880,00 Changes in the balances of selected accounts from the beginning to the end of the current year are as follows: Accounts receivable (net) Inventories Prepaid expenses Increase (Decrease) ($11,760) 3,500 (3,890) Instructions Amount Descriptions Statement of Cash Flows-Operating Activities Finns Question 3.500 Instructions Inventories Prepaid expenses Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Income tax payable (3.890) (8.280) 1,010 (1.730) Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the direct method. Refer to the Amount Descriptions fat provided for the exact wording of to answer choices for text entries in the operating activities section, use the minus sign to ideato cash outlows, decreases in cash and a net cash outlow. Ir required, b. What does the direct method show about a company cash flows from operating activities that is not shown using the Indirect method? Amount Descriptions Amount Descriptions Cash paid for dividends Cash paid for purchase of land Cash payments for income taxes Cash payments for merchandise Cash payments for operating expenses Cash received from customers Cash received from sale of common stock Cash received from sale of land Net cash flow from operating activities Net cash flow used for operating activities Statement of Cash Flows-Operating Activities a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the direct method. Refer to the Amount Desorptions list provided for the exact wording of the answer choices for rent entries. In the operating activities section, use the minus sign to indicate cash outlows, decreases in cash and a net cash outflow, il recured Cash Flows from Operating Activities Section Cash flows froen operating activities 2 b. What does the direct method show about a company's cash flows from operating activities that is not shown using the indirect method? With the the cash received less the cash payments is the net cash flow from operating activities. Individual cash receipts and payments are reported in the Cash Flows from Operating Activities section. The adjusts accrual-basis net income for revenues and expenses that do not involve the receipt or payment of cash to arrive at cash flows from operating activities