Sales $443,500.00 2 Cost of merchandise sold 154,500.00 3 Gross profit $289,000.00 4 Operating expenses:

The income statement for Rhino Company for the current year ended June 30 is as follows:

1	Sales		$443,500.00
2	Cost of merchandise sold		154,500.00
3	Gross profit		$289,300.00
4	Operating expenses:
5	Depreciation expense	$39,000.00
6	Other operating expenses	115,110.00
7	Total operating expenses		154,110.00
8	Income before income tax		$132,190.00
9	Income tax expense		40,330.00
10	Net income		$91,860.00

The balances of selected accounts at the beginning and the end of the current year are as follows:

	End	Beginning
	of Year	of Year
Accounts receivable (net)	$36,340	$30,940
Inventories	92,890	80,000
Prepaid expenses	15,580	16,440
Accounts payable (merchandise creditors)	67,180	62,180
Accrued expenses payable (operating expenses)	20,230	21,610
Income tax payable	3,990	3,990

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

Answer rating: 100% (QA)

Answer RHINO COMPANY Cash Flow operating Activities Direct M... View the full answer