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Freedom Wireless reports operating expenses of $255,000 Operating expenses include both rent expense and salaries expense

Freedom Wireless reports operating expenses of $255,000. Operating expenses include both rent expense and salaries expense. Prepaid rent decreases during the year by $10,000 and salaries payable increases by $25,000. What is the cash paid for operating expenses during the year?  

 

 

143. Wilson Electric reports income tax expense of $150,000. Income tax payable at the beginning and end of the year are $20,000 and $25,000, respectively. What is the cash paid for income taxes during the year?

 

 

 

144. Portions of the financial statements for Horizon Telecom are provided below.

 

Horizon Telecom

Income Statement

For the Year Ended December 31, 2015

 

 

 

 

 

Revenues

 

 

$610,000

 

 

 

 

 

 

Expenses:

 

 

 

 

Cost of goods sold

391,000

 

 

 

Operating expenses

120,000

 

 

 

Depreciation expense

32,000

 

 

 

Income tax expense

44,000

 

 

 

Total expenses

 

 

566,000

 

Net Income

 

 

$44,000   

 

 

 

 

 

 

         

 

Horizon Telecom

Selected Balance Sheet Data

December 31, 2015

Increase in accounts receivable

$ 6,000

 

 

Increase in inventory

13,000

 

 

Decrease in prepaid rent

9,000

 

 

Increase in operating expenses payable

5,000

 

 

Decrease in accounts payable

8,000

 

 

Increase in income tax payable

20,000

 

 

       

 

Prepare the operating activities section of the statement of cash flows for Horizon Telecom using the direct method.

Jan 27 2020 View more View Less

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