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Home / Questions / Portions of the financial statements for Horizon Telecom are provided below

Portions of the financial statements for Horizon Telecom are provided below

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

370,000

 

 

 

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 indirect method.

 

 

 

135. Mobile Video Systems sold land, investments, and issued their own common stock for $10 million, $15 million, and $20 million, respectively. Mobile Video also purchased treasury stock, equipment, and a patent for $2 million, $4 million, and $6 million, respectively. What amount should the company report as net cash flows from investing activities? What amount should the company report as net cash flows from financing activities?

Jan 27 2020 View more View Less

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