134. 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
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 theindirectmethod.
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?
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