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Cash Flows from Operating Activities-Direct Method The income statement for Rhino Company for the current year ended June 30
Accounts receivable (net) $36,300 $31,240 Inventories 92,400 80,300 Prepaid expenses 14,520 15,840 Accounts payable (merchand
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Answer #1

Cash payment for operating expenses will be as follows:

Cash operating expenses as per income statement =$115,280

Less: Decrease in prepaid expenses = 15840-14520 =$1320

Add: Decrease in accrued expenses 20900-19140 =$1760

Hence, cash payments for operating expenses =$115,720

I.e. -115,720 since outflow

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