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 $262,580 Cost of merchandise sold 90,600 Gross profit $171,980 Operating expenses: Depreciation expense $22.680 Other operating expenses 68.100 Total operating expenses 90,780 Income before income tax $81,200 Income tax expense 23,490 Net income $57.710 End of Year Beginning of Year Accounts receivable (net) $21.180 $18,430 Inventories 47,250 54,310 8,540 9,390 39,820 36.950 Prepaid expenses Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Income tax payable 11,250 12.260 2.140 2.140 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 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 SO Cash payments for merchandise Cash payments for operating expenses Cash payments for income taxes Net cash flow from operating activities