Chapter 13 - Homework eBook Calculator Print Item Cash Flows from Operating Activities-Direct Method The income statement of Booker T Industries Inc. for the current year ended June 30 is as follows: $442,710 251,370 $191,340 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other operating expenses $33,970 89,810 Total operating expenses 123,780 Income before income tax $67,560 Income tax expense 18,750 Net income $48,810 Changes in the balances of selected accounts from the beginning to the end of the current year are as follows: Increase/ Decrease Accounts receivable (net) $(9,810) Inventories Prepaid expenses Accounts payable (merchandise creditors) 3,420 (3,270) (6,980) 980 Accrued expenses payable (operating expenses) Check My Work 5 more Check My Work uses remaining.