The income statement for Stallion 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:

Prepare the Cash flows from operating activities section of the statement of cash flows, using the direct method.

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Sales. Cost of merchandise sold. Gross profit.. $374,500 129,500 $245,000 Operating expenses: Depreciation expense.. Other operating expenses. Total operating expenses Income before income tax. $32,400 96,910 129310 S115,690 33.290 Income tax expense. Net income... w... $ 82,400 End of Year Beginning of Year $26.260 Accounts receivable (net). Inventories.. Prepaid expenses.. $30,510 77,670 67,500 13.320 Accounts payable (merchandise creditors).. Accrued expenses payable (operating expenses). Income tax payable.. 12,210 52,710 17,600 3,700 56,780 16,090 3,700