eBook Print Item Compute Cash Provided by Operating Activities Hom Company's condensed income statement for the year ended December 31, 20-2, is shown. Net sales Cost of goods sold Gross profit Operating expenses Operating income Other revenues and expenses: Interest revenue Interest expense Income before taxes Income tax expense Net income $1,220,000 740,000 $480,000 142,000 $338,000 $420 (1,200) (780) $337,220 118,000 $219,220 Additional information obtained from Horn's comparative balance sheet and awary records as of December 31, 20-2 and 20-1, is shown 20-2 20-1 O Additional information obtained from Hor's comparative balance sheet and auxiliary records as of December 31, 20-2 and 20-1, is show 20-2 20-1 Accounts receivable $135,000 $122,600 Merchandise inventory 145,300 158,900 Accounts payable 45,000 87,100 Income tax payable 2,000 1,000 Supplies and prepayments 11,300 6,800 Accrued and withheld payroll taxes 2,750 3,700 Accrued interest receivable 90 Accrued interest payable 240 160 Depreciation expense for 20-2, Included in operating expenses on the income statement, was $32,000. Required: Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2. Horn Company Statement of Cash Flows (Partial) Erondas com 1202 210 022 Required: Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2. Horn Company Statement of Cash Flows (Partial) For Year Ended December 31, 20-2 Cash flows from operating activities: Net Income 219 220 Adjustments for changes in current assets and liabilities related to operating activities: Increase in accounts receivable Decrease in merchandise Inventory Decrease in accounts payable Increase in income tax payable Increase in supplies and prepayments Decrease in accrued and withheld payroll taxes Decrease in accrued interest payable Increase in accrued interest receivable Noncash expenses: Accrued interest payable Net cash provided by operating activities O My Work 2 more Check My Work uses remaining All work saved LO