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: $445,500 154,000 $291,500 Sales Cost of merchandise sold Gross profit Operating expenses: Depreciation expense Other operating expenses Total operating expenses Income before income tax Income tax expense $38,500 153,780 $137.720 39,600 Net Income $98,120 End of Year Beginning of Year Accounts receivable (net) $36,300 $31,2 Inventories 92,400 80,300 Prepaid expenses 14,520 15,840 Accounts payable (merchandise creditors) 67.540 62,700 Accrued expenses payable (operating expenses) 19,140 20.900 Income tax payable 4,400 4,400 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 Accounts receivable (net) $36,300 $31,240 Inventories 92,400 80,300 Prepaid expenses 14,520 15,840 Accounts payable (merchandise creditors) 67,540 62,700 Accrued expenses payable (operating expenses) 19,140 20,900 Income tax payable 4,400 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 4,400 Cash payments for merchandise Cash payments for operating expenses Cash payments for income taxes Net cash flow from operating activities