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 is as follows:
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Sales
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$444,100.00
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Cost of merchandise sold
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155,600.00
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Gross profit
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$288,500.00
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Operating expenses:
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$37,510.00
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Other operating expenses
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114,580.00
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Total operating expenses
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152,090.00
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Income before income tax
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$136,410.00
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Income tax expense
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40,010.00
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Net income
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$96,400.00
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The balances of selected accounts at the beginning and the end of the current year are as follows:
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End
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Beginning
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of Year
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of Year
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$37,180 | $31,240 | |
Inventories | 91,040 | 79,880 |
Prepaid expenses | 14,990 | 15,950 |
Accounts payable (merchandise creditors) | 68,570 | 63,000 |
Accrued expenses payable (operating expenses) | 19,010 | 20,840 |
Income tax payable | 3,470 | 3,470 |
Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the direct method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow , if required.
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Statement of Cash Flows-Operating Activities
Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the direct method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow, if required.
Rhino Company
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Cash Flows from Operating Activities Section
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For the Year Ended June 30
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Cash flows from operating activities:
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