FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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:
Sales | $445,500 | ||||
Cost of merchandise sold | 154,000 | ||||
Gross profit | $291,500 | ||||
Operating expenses: | |||||
$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 | |||
$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. Use the minus sign to indicate
Rhino Company | |
Cash Flows from Operating Activities Section | |
For the year ended on June 30 | |
Cash flows from operating activities: | |
Cash received from customers | $ |
Cash payments for merchandise | |
Cash payments for operating expenses | |
Cash payments for income taxes | |
Net cash flow from operating activities |
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