Portions of the financial statements for Horizon Telecom are provided below. Horizon Telecom
Selected Balance Sheet Data
December 31, 2012
$\begin{array}{lr}
\text { Increase in accounts receivable } & \$ 6,000 \
\text { Increase in inventory } & 13,000 \
\text { Decrease in prepaid rent } & 9,000 \
\text { Increase in operating expenses payable } & 5,000 \
\text { Decrease in accounts payable } & 8,000 \
\text { Increase in income tax payable } & 20,000
\end{array}$ Prepare the operating activities section of the statement of cash flows for Horizon Telecom using the indirect method.

Question

Portions of the financial statements for Horizon Telecom are provided below.  Horizon Telecom
Selected Balance Sheet Data
December 31, 2012
$\begin{array}{lr}
\text { Increase in accounts receivable } & \$ 6,000 \
\text { Increase in inventory } & 13,000 \
\text { Decrease in prepaid rent } & 9,000 \
\text { Increase in operating expenses payable } & 5,000 \
\text { Decrease in accounts payable } & 8,000 \
\text { Increase in income tax payable } & 20,000
\end{array}$ Prepare the operating activities section of the statement of cash flows for Horizon Telecom using the indirect method.

Quizplus · Accepted Answer

The Answer of Portions of the financial statements for Horizon Telecom are provided below.  Horizon Telecom
Selected Balance Sheet Data
December 31, 2012
$\begin{array}{lr}
\text { Increase in accounts receivable } & \$ 6,000 \
\text { Increase in inventory } & 13,000 \
\text { Decrease in prepaid rent } & 9,000 \
\text { Increase in operating expenses payable } & 5,000 \
\text { Decrease in accounts payable } & 8,000 \
\text { Increase in income tax payable } & 20,000
\end{array}$ Prepare the operating activities section of the statement of cash flows for Horizon Telecom using the indirect method.

Portions of the Financial Statements for Horizon Telecom Are Provided