Portions of the financial statements for Horizon Telecom are provided below. HORIZON TELECOM Income Statement For the Year Ended December 31, 2021 Revenues $619,000 Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses $366,000 119,000 33,000 50,500 568,500 Net Income $ 50,500 HORIZON TELECOM Selected Balance Sheet Data December 31, 2021 Increase in accounts receivable Increase in inventory Decrease in prepaid rent Increase in operating expenses payable Decrease in accounts payable Increase in income tax payable $ 4,500 12,300 9,200 5,200 7,500 20,300 Prepare the operating activities section of the statement of cash flows for Horizon Telecom using the indirect method. (Amou deducted and negative values should be indicated by minus sign.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Portions of the financial statements for Horizon Telecom are provided below.
HORIZON TELECOM
Income Statement
For the Year Ended December 31, 2021
Revenues
$619,000
Expenses:
Cost of goods sold
Operating expenses
Depreciation expense
Income tax expense
Total expenses
$366,000
119,000
33,000
50,500
568,500
$ 50,500
Net Income
HORIZON TELECOM
Selected Balance Sheet Data
December 31, 2021
Increase in accounts receivable
Increase in inventory
Decrease in prepaid rent
Increase in operating expenses payable
Decrease in accounts payable
Increase in income tax payable
$ 4,500
12,300
9,200
5,200
7,500
20,300
Prepare the operating activities section of the statement of cash flows for Horizon Telecom using the indirect method. (Amounts to be
deducted and negative values should be indicated by minus sign.)
HORIZON TELECOM
Statement of Cash Flows
For the year ended December 31, 2021
Cash Flows from Operating Activities
Adjustments to reconcile net income to net cash flows from operating activities:
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Transcribed Image Text:Portions of the financial statements for Horizon Telecom are provided below. HORIZON TELECOM Income Statement For the Year Ended December 31, 2021 Revenues $619,000 Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses $366,000 119,000 33,000 50,500 568,500 $ 50,500 Net Income HORIZON TELECOM Selected Balance Sheet Data December 31, 2021 Increase in accounts receivable Increase in inventory Decrease in prepaid rent Increase in operating expenses payable Decrease in accounts payable Increase in income tax payable $ 4,500 12,300 9,200 5,200 7,500 20,300 Prepare the operating activities section of the statement of cash flows for Horizon Telecom using the indirect method. (Amounts to be deducted and negative values should be indicated by minus sign.) HORIZON TELECOM Statement of Cash Flows For the year ended December 31, 2021 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating activities: Prev 1 of 10 Next >
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