EX $14-23$ Cash flows from operating activities$-$direct method

OBJ. $3$

$$ Net cash flow from operating activities, $$123,860$

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:

$\backslash$table$[[$Sales$,,$$$445,500],[$Cost of merchandise sold,,$154,000],[$Gross profit,,$$291,500],[$Operating expenses:$],[$Depreciation expense,$ $38,500,],[$Other operating expenses,$115,280,],[$Total operating expenses,,$153,780],[$Income before income tax,,$$137,720],[$Income tax expense,,$39,600],[$Net income,,$ $98,120],[$End of Year,Beginning of Year$],[$Accounts receivable $($net$),$$$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. $.,4,400,4,400]]$

Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the direct method.