Cash Flows from Operating ActivitiesDirect Method The income statement for Rhino Company for the current year ended June 30 and balances of selected accounts at the beginning a Sales $185,090 Cost of merchandise sold 63,870 Gross profit $121,220 Operating expenses: Depreciation expense $15,990 Other operating expenses 48,000 Total operating expenses 63,990 Income before income tax $57,230 Income tax expense 16,550 Net income $40,680 Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) End of Year Beginning of Year $14,930 $12,990 38,280 33,300 6,020 6,620 28,070 26,050 7,930 8,640 Income tax payable 1,510 1,510 Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the direct method. Use the minus sign payments, decreases in cash, or any negative adiustments H e tax paydule Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the direct method payments, decreases in cash, or any negative adjustments. Rhino Company Cash Flows from Operating Activities Section For the year ended on June 30 Cash flows from operating activities: Cash received from customers Cash payments for merchandise Cash payments for operating expenses Cash payments for income taxes Net cash flow from operating activities Feedback Check My Work Consider what account(s) would have an impact on determining how much cash is received during the period determining how much was paid out in cash during the period