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 $267.900 Cost of merchandise sold 92.440 Gross profit $175,460 Operating expenses: Depreciation expense $23,140 Other operating expenses 69,480 Total operating expenses 92.620 Income before income tax Income tax expense $82,840 23.960 Net income $58,880 End of Year Beginning of Year Accounts receivable (net) $18.800 Inventories 48,210 9,580 Prepaid expenses Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Income tax payable $21.610 55,410 8,710 40,630 11.480 2,180 37,700 12,510 2,180 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 activies Cash received from customers 265.000 Cash payments for merchandise Cash payments for operating expenses Cash payments for income taxes Net cash flow from operating activities