Cash Flows from Operating Activities - Direct Method

Cash Flows from Operating Activities-Direct Method The income statement of Booker T Industries Inc. for the current year ended June 30 is as follows: Sales Cost of merchandise sold Gross proft Operating expenses $414,950 235,610 $179,340 $31,840 84,180 Depreciation expense Other operating expenses 116,020 $63,320 17,570 $45,750 Total operating expenses Income before income tax Income tax expense Net income Changes in the balances of selected accounts from the beginning to the end of the current year are as follows: Increase/ Decrease* Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) $9,200* 3,200 3,070 6,540* 920