Question - The income statement for Wholly Bagel 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 $184000
Cost of merchandise sold 67000
Gross profit 117000
Operating expense
Depreciation expense $14500
Other operating expenses 49000
Total operating expenses 63500
Income before income tax 53500
Income tax expense 15400
Net income 38100
End of Year Beginning of the Year
Accounts receivable $14800 $12900
Inventories 38100 33100
Prepaid expenses 6000 6600
Accounts payable 279000 25900
Accrued expenses 7900 8600
Income tax payable 1500 1500
Prepare the cash flows from operating activities section of the statement of cash flows using the direct method.