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 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.

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Answer RHINO COMPANY Cash Flow operating Activities Direct M... View the full answer