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 $191,460 Cost of merchandise sold 66,070 Gross profit $125,390 Operating expenses: Depreciation expense $16,540 Other operating expenses 49,650 Total operating expenses 66,190 Income before income tax $59,200 Income tax expense 17,120 Net income $42,080 Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Income tax payable End of Year Beginning of Year $15,440 $13,430 39,600 34,450 6,230 6,850 29,040 26,950 8,210 8,950 1,560 1.560 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: Net cash flow from operating activities SE