Portions of the financial statements for Horizon Telecom are provided below Inco
ID: 2592351 • Letter: P
Question
Portions of the financial statements for Horizon Telecom are provided below Income Staternent For the Year Ended December 31, 2018 $617,000 Revenues Expenses Cost of goods sold Operating expenses Depreciation expense Income tax expense $360,000 116,000 29,000 56,000 Total expenses 561,000 Net Income $ 56,000 HORIZON TELECOM Selected Balance Sheet Data December 31, 2018 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 S 5,700 12,800 10,600 6,300 6,500 20,400 Prepare the operating activities section of the statement of cash flows for Horizon minus sign.) Ch ill Regular Home.Explanation / Answer
HORIZON TELECOM
Statement of Cash Flows
For the year ended December 31, 2018
Cash flows from Operating activities Net income 56,000 Adjustments for noncash effects : ADD : Depreciation 29,000 Changes in current assets and current liabilities LESS : Increase in Current assets Accounts Receivable (5,700) Inventory (12,800) ADD : Decrease in Current assets Prepaid rent 10,600 ADD : Increase in Current liabilities Operating expenses payable 6,300 Income tax payable 20,400 LESS : Decrease in Current liabilities Accounts payable (6,500) Net cash flows from Operating activities 97,300