Sales .... $445,500 Cost of merchandise sold 154,000 Gross profit ..... Operating expenses: Depreciation expense Other operating expenses Total operating expenses . $291,500 $ 38,500 115,280 153,780 Income before income tax $137,720 Income tax expense 39,600 $ 98,120 Net income . End of Year Beginning of Year Accounts receivable (net). $36,300 $31,240 92,400 Inventories ... 80,300 Prepaid expenses 14,520 15,840 Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Income tax payable.... 67,540 62,700 19,140 20,900 4,400 4,400

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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:

Please see  the attachment for details:

Prepare the Cash flows from operating activities section of the statement of cash flows, using the direct method.

Sales ....
$445,500
Cost of merchandise sold
154,000
Gross profit .....
Operating expenses:
Depreciation expense
Other operating expenses
Total operating expenses .
$291,500
$ 38,500
115,280
153,780
Income before income tax
$137,720
Income tax expense
39,600
$ 98,120
Net income .
End
of Year
Beginning
of Year
Accounts receivable (net).
$36,300
$31,240
92,400
Inventories ...
80,300
Prepaid expenses
14,520
15,840
Accounts payable (merchandise creditors)
Accrued expenses payable (operating expenses)
Income tax payable....
67,540
62,700
19,140
20,900
4,400
4,400
Transcribed Image Text:Sales .... $445,500 Cost of merchandise sold 154,000 Gross profit ..... Operating expenses: Depreciation expense Other operating expenses Total operating expenses . $291,500 $ 38,500 115,280 153,780 Income before income tax $137,720 Income tax expense 39,600 $ 98,120 Net income . End of Year Beginning of Year Accounts receivable (net). $36,300 $31,240 92,400 Inventories ... 80,300 Prepaid expenses 14,520 15,840 Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Income tax payable.... 67,540 62,700 19,140 20,900 4,400 4,400
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