142. 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...





142. 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.









May 15, 2022
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