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 and the end of the year are as follows:

Sales					$234,280
Cost of merchandise sold					80,840
Gross profit					$153,440
Operating expenses:
	Depreciation expense		$20,240
	Other operating expenses		60,760
		Total operating expenses			81,000
Income before income tax					$72,440
Income tax expense					20,950
Net income					$51,490

	End of Year		Beginning of Year
Accounts receivable (net)	$18,900		$16,440
Inventories	48,450		42,150
Prepaid expenses	7,620		8,380
Accounts payable (merchandise creditors)	35,530		32,970
Accrued expenses payable (operating expenses)	10,040		10,940
Income tax payable	1,910		1,910

Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the direct method. Use the minus sign to indicate cash outflows, cash 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