Appe EX 1 V Net cash flow from The operating activities, selec $123,860 Pr the di

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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EX 13-22 THANK YOU!
Appendix 2
EX 13-22 Cash flows from operating activities-direct method
A Net cash flow from 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:
operating activities,
$123,860
Sales..
$ 445,500
Cost of goods sold.
Gross profit.
(154,000)
$ 291,500
Operating expenses:
Depreciation expense
$ 38,500
Other operating expenses
115,280
Total operating expenses
(153,780)
$ 137,720
Income before income tax
Income tax expense
(39,600)
Net income
$ 98,120
End
Beginning
of Year
of Year
Accounts receivable (net)
$36,300
92,400
$31,240
Inventories
80,300
Prepaid expenses
Accounts payable (merchandise creditors)
Accrued expenses payable (operating expenses)
Income tax payable.
14,520
15,840
67,540
62,700
19,140
20,900
4,400
4,400
Prepare the “Cash flows from operating activities" section of the statement of cash flows, using
the direct method.
Transcribed Image Text:Appendix 2 EX 13-22 Cash flows from operating activities-direct method A Net cash flow from 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: operating activities, $123,860 Sales.. $ 445,500 Cost of goods sold. Gross profit. (154,000) $ 291,500 Operating expenses: Depreciation expense $ 38,500 Other operating expenses 115,280 Total operating expenses (153,780) $ 137,720 Income before income tax Income tax expense (39,600) Net income $ 98,120 End Beginning of Year of Year Accounts receivable (net) $36,300 92,400 $31,240 Inventories 80,300 Prepaid expenses Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Income tax payable. 14,520 15,840 67,540 62,700 19,140 20,900 4,400 4,400 Prepare the “Cash flows from operating activities" section of the statement of cash flows, using the direct method.
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