Cash Flows from Operating Activities - Direct Method

Cash Flows from Operating Activities-Direct Method The income statement for Rhino 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: Sales Cost of merchandise sold Gross profit $284,240 98,080 $186,160 Depreciation expense $24,550 Other operating expenses 73,710 98,260 87,900 25,430 $62,470 Total operating expenses Income before income tax Income tax expense Net income End of Year Beginning of Year $22,930 58,780 9,250 43,100 12,180 $19,950 51,140 10,180 40,000 13,280 Accounts receivable (net) Prepaid expenses Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses)