Question

The income statement for Rhino Company for the current year ended June 30 and balances of...

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:

1

Sales

$450,000.00

2

Cost of goods sold

151,700.00

3

Gross profit

$298,300.00

4

Operating expenses:

5

Depreciation expense

$37,780.00

6

Other operating expenses

115,450.00

7

Total operating expenses

153,230.00

8

Income before income tax

$145,070.00

9

Income tax expense

39,310.00

10

Net income

$105,760.00

End Beginning
of Year of Year
Accounts receivable (net) $36,230 $31,850
Inventories 93,760 81,240
Prepaid expenses 14,670 15,660
Accounts payable (merchandise creditors) 67,950 63,470
Accrued expenses payable (operating expenses) 19,130 20,560
Income tax payable 4,390 4,390

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. In the operating activities section, use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow, if required.

1. Cash flows from operating activities:          

2. Cash received from customers      

3   Cash payments for merchandise             

4   Cash payments for operating expenses         

5   Cash payments for income taxes             

6   Net cash flow from operating activities

Homework Answers

Answer #1
Cash flows from operating activities:   
Cash received from customers ($450,000+$31,850-$36,230) $   445,620
Cash payments for merchandise ($151,700+$93,760-$81,240+$63,470-$67,950) $ (159,740)
Cash payments for operating expenses ($115,450+$20,560-$19,130+$14,670-$15,660) $ (115,890)
Cash payments for income taxes ($39,310+$4,390-$4,390) $   (39,310)
Net cash flow from operating activities $   130,680

You can reach me over comment box if you have any doubts. Please rate this answer

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The income statement of Booker T Industries Inc. for the current year ended June 30 is...
The income statement of Booker T Industries Inc. for the current year ended June 30 is as follows: Sales $352,820 Cost of goods sold 200,340 Gross profit $152,480 Operating expenses: Depreciation expense $27,070 Other operating expenses 71,580 Total operating expenses 98,650 Income before income tax $53,830 Income tax expense 14,930 Net income $38,900 Changes in the balances of selected accounts from the beginning to the end of the current year are as follows: Increase/ Decrease Accounts receivable (net) $(7,820) Inventories...
The net income reported on the income statement for the current year was $73,600. Depreciation recorded...
The net income reported on the income statement for the current year was $73,600. Depreciation recorded on store equipment for the year amounted to $27,400. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $23,500 $18,700 Accounts receivable (net) 56,000 48,000 Merchandise inventory 35,500 40,000 Prepaid expenses 4,750 7,000 Accounts payable (merchandise creditors) 21,800 16,800 Wages payable 4,900 5,800 Required: A. Prepare...
The net income reported on the income statement for the current year was $139,400. Depreciation recorded...
The net income reported on the income statement for the current year was $139,400. Depreciation recorded on store equipment for the year amounted to $23,000. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of year Beginning of Year Cash $56,740 $51,630 Accounts Recievable (net) 40,680 38,150 Merchandise inventory 55,550 58,080 Prepaid expenses 6,240 4,900 Accounts Payable (merchandise creditors) 53,170 48,840 Wages payable 29,050 31,910 Prepare the Cash...
Cash Flows from Operating Activities—Direct Method The income statement of Booker T Industries Inc. for the...
Cash Flows from Operating Activities—Direct Method The income statement of Booker T Industries Inc. for the current year ended June 30 is as follows: Sales $550,000 Cost of merchandise sold 312,300 Gross profit $237,700 Operating expenses: Depreciation expense $42,210 Other operating expenses 111,580 Total operating expenses 153,790 Income before income tax $83,910 Income tax expense 23,270 Net income $60,640 Changes in the balances of selected accounts from the beginning to the end of the current year are as follows: Increase/...
8. Cash Flows from Operating Activities—Direct Method The income statement of Booker T Industries Inc. for...
8. Cash Flows from Operating Activities—Direct Method The income statement of Booker T Industries Inc. for the current year ended June 30 is as follows: Sales $478,530 Cost of merchandise sold 271,710 Gross profit $206,820 Operating expenses: Depreciation expense $36,720 Other operating expenses 97,080 Total operating expenses 133,800 Income before income tax $73,020 Income tax expense 20,260 Net income $52,760 Changes in the balances of selected accounts from the beginning to the end of the current year are as follows:...
The net income reported on the income statement for the current year was $250,300. Depreciation recorded...
The net income reported on the income statement for the current year was $250,300. Depreciation recorded on equipment and a building amounted to $74,800 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $66,580 $69,240 Accounts receivable (net) 84,420 85,440 Inventories 166,450 147,200 Prepaid expenses 9,250 9,760 Accounts payable (merchandise creditors) 74,370 77,270 Salaries payable 10,720 9,620 a. Prepare...
The net income reported on the income statement for the current year was $423,900. Depreciation recorded...
The net income reported on the income statement for the current year was $423,900. Depreciation recorded on store equipment for the year amounted to $17,560. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $42,670 $40,170 Accounts receivable (net) 30,670 27,430 Inventories 38,830 45,750 Prepaid expenses 3,680 4,890 Accounts payable (merchandise creditors) 39,630 35,780 Wages payable 21,610 23,900 Required: a. Prepare the...
JSW Corp. reported net income on the income statement for the current year of $59,000. Depreciation...
JSW Corp. reported net income on the income statement for the current year of $59,000. Depreciation recorded on fixed assets for the year was $24,000. Balances of the current asset and current liability accounts at the end and beginning of the year are listed below. Prepare the cash flows from operating activities section of a statement of cash flows using the indirect method. End Beginning Cash $65,000 $  70,000 Accounts receivable (net) 70,000 57,000 Inventories 86,000 102,000 Prepaid expenses 4,000 4,500...
The net income reported on the income statement for the current year was $146,700. Depreciation recorded...
The net income reported on the income statement for the current year was $146,700. Depreciation recorded on store equipment for the year amounted to $24,200. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $58,390 $53,130 Accounts receivable (net) 41,870 39,260 Inventories 57,160 59,770 Prepaid expenses 6,420 5,050 Accounts payable (merchandise creditors) 54,710 50,260 Wages payable 29,900 32,830 a. Prepare the Cash...
he net income reported on the income statement for the current year was $346,400. Depreciation recorded...
he net income reported on the income statement for the current year was $346,400. Depreciation recorded on equipment and a building amounted to $99,330 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $90,570 $96,530 Accounts receivable (net) 111,490 119,020 Inventories 222,910 208,840 Prepaid expenses 13,500 14,540 Accounts payable (merchandise creditors) 96,260 103,590 Salaries payable 15,150 12,980 Required: A....