m $($used for$)$ 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:

Line Item Description Amount Amount

Sales $$445,500$

Cost of goods 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$

Line Item Description End of Year Beginning of Year

Accounts receivable $($net$)$ $$36,300$ $$31,240$

Inventories $92,40080,300$

Prepaid expenses $14,52015,840$

Accounts payable $($merchandise creditors$)67,54062,700$

Accrued expenses payable $($operating expenses$)19,14020,900$

Income tax payable $4,4004,400$