Portions of the financial statements for Horizon Telecom are provided below. ...
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Accounting
Portions of the financial statements for Horizon Telecom are provided below.
HORIZON TELECOM Income Statement For the Year Ended December 31, 2018
Revenues
$610,000
Expenses:
Cost of goods sold
$366,000
Operating expenses
111,000
Depreciation expense
32,000
Income tax expense
50,500
Total expenses
559,500
Net Income
$ 50,500
HORIZON TELECOM Selected Balance Sheet Data December 31, 2018
Increase in accounts receivable
$ 5,900
Increase in inventory
12,800
Decrease in prepaid rent
10,300
Increase in operating expenses payable
6,000
Decrease in accounts payable
7,800
Increase in income tax payable
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, 2018 Cash Flows from Operating Activities Adjustments for noncash effects: Changes in current assets and current liabilities: Net cash flows from operating activities 0
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