The income statement of Booker T Industries Inc. for the current year ended June 30 is as follows: Sales $511,000 Cost of merchandise sold 290,500 Gross profit $220,500 Operating expenses: Depreciation expense $39,200 Other operating expenses 105,000 Total operating expenses 144,200 Income before income tax $76,300 Income tax expense 21,700 Net income $54,600 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) $(11,760) Inventories 3,920 Prepaid expenses (3,780) Accounts payable (merchandise creditors) (7,980) Accrued expenses payable (operating expenses) 1,260 Income tax payable (2,660) a. 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.
