Question

Cash Flows from Operating Activities–Direct Method 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: $445,500 (154,000) $291,500 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other operating expenses Total operating expenses $38,500 115,280 Income before income tax (153,780) $137,720 (39,600) $98,120 Income tax expense Net income End of Year Beginning of Year Accounts receivable (net) $36,300 $31,240 Inventories 92,400 80,300 Prepaid expenses 14,520 Accounts payable (merchandise creditors) 67,540 15,840 62,700 20,900 Accrued expenses payable (operating expenses) 19,140 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 cash out flows, cash payments, decreases in cash, or any negative adjustments. 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

Answer 1

Rhino company
Cash flows from operating activities section
For the year ended on June 30
Cash flow from operating activities :
Cash received from customers	440440
Cash payment for merchandise	-161260
Cash payment for operating expenses	-117040
Cash payment for income taxes	-39600
Net cash flow from operating activities		122540

Working notes :
1) Calculation of Cash received from customers :
	$
Beginning accounts receivables	31240
(+) Sales	445500
(-) Ending accounts receivables	36300
Cash received from customers	440440
2) Calculation of cash payment for merchandise :
Cost of goods sold	154000
(+) Ending inventories	92400
(-) Beginning inventory	80300
Purchases	166100
(+) Beginning accounts payables (merchandise creditors)	62700
(-) Ending accounts payables (Merchandise creditors)	67540
Cash payment for merchandise	161260
3) Calculation of cash payments for operating expenses :
Beginning accrued expenses payable (operating expenses)	20900
(+) Other operating expenese of current year	115280
(-) Ending accrued expense payable (operating expense)	19140
Cash payment for operating expenses	117040
4) Cash payments for income taxes :
Beginning income tax payable	4400
(+) Income tax expense for the current year	39600
(-) Ending income tax payable	4400
Cash payment for income taxes	39600

Answer 2

What is the answer for operating activities