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: Sales $445,500 Cost of merchandise sold 154,000 Gross profit $291,500 Operating expenses: Depreciation expense $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 Accounts receivable (net) $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 cash outflows, 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 Net cash flow from operating activities
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: Sales $445,500 Cost of merchandise sold 154,000 Gross profit $291,500 Operating expenses: Depreciation expense $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 Accounts receivable (net) $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 cash outflows, 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 Net cash flow from operating activities
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 5E: Cash flows from operating activitiesindirect method The net income reported on the income statement...
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Question
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: | |||||
Depreciation expense | $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 | |||
Accounts receivable (net) | $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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