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 $223,860 Cost of goods sold 77,240 $146,620 Gross profit Operating expenses: Depreciation expense $19,340 Other operating expenses 58,060 Total operating expenses 77,400 Income before income tax $69,220 Income tax expense 20,020 Net income $49,200 End of Year Beginning of Year Accounts receivable (net) $18,060 $15,710 Inventories 40,280 46,300 7,280 33,950 Prepaid expenses Accounts payable (merchandise creditors) 8,010 31,510 Net income $49,200 End of Year Beginning of Year Accounts receivable (net) $15,710 $18,060 46,300 Inventories 40,280 7,280 8,010 33,950 Prepaid expenses Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Income tax payable 9,590 31,510 10,450 1,820 1,820 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 out flows, 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