Portions of the financial statements for Horizon Telecom are provided below. HORIZON TELECOM Income Statement $618,000...
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Portions of the financial statements for Horizon Telecom are provided below. HORIZON TELECOM Income Statement $618,000 For the year ended December 31, 2021 Revenues Expenses: Cost of goods sold $362,000 Operating expenses 116,000 Depreciation expense 31,000 Income tax expense 54,500 Total expenses 563,500 Net Income $ 54,500 HORIZON TELECOM Selected Balance Sheet Data Increase in accounts receivable December 31, 2021 $ 4,100 Increase in inventory 12,200 Decrease in prepaid rent 10,500 Increase in operating expenses payable 5,300 Decrease in accounts payable Increase in income tax payable 7,700 21,900 Required: Prepare the operating activities section of the statement of cash flows for Horizon Telecom using the direct method. (Amounts to be deducted should be indicated with a minus sign.) HORIZON TELECOM Statement of Cash Flows (partial) For the year ended December 31, 2021 Cash Flows from Operating Activities Cash received from customers Cash paid to suppliers Cash paid for operating expenses Cash paid for income taxes Net cash flows from operating activities $ 0 Portions of the financial statements for Horizon Telecom are provided below. HORIZON TELECOM Income Statement $618,000 For the year ended December 31, 2021 Revenues Expenses: Cost of goods sold $362,000 Operating expenses 116,000 Depreciation expense 31,000 Income tax expense 54,500 Total expenses 563,500 Net Income $ 54,500 HORIZON TELECOM Selected Balance Sheet Data Increase in accounts receivable December 31, 2021 $ 4,100 Increase in inventory 12,200 Decrease in prepaid rent 10,500 Increase in operating expenses payable 5,300 Decrease in accounts payable Increase in income tax payable 7,700 21,900 Required: Prepare the operating activities section of the statement of cash flows for Horizon Telecom using the direct method. (Amounts to be deducted should be indicated with a minus sign.) HORIZON TELECOM Statement of Cash Flows (partial) For the year ended December 31, 2021 Cash Flows from Operating Activities Cash received from customers Cash paid to suppliers Cash paid for operating expenses Cash paid for income taxes Net cash flows from operating activities $ 0
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