The income statement for Kipitz 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 directmethod.

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657,800 227,500 $430,300 Cost of merchandise sold. Operating expenses: ...170,300 227,175 $203,125 58,500 144,625 Income before income tax . . . .. .. Beginning of Year End of Year 21,450 99,775 28,275 6,500 23,595 92,625 30,875 6,500 Accrued expenses payable (operating expenses) .