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1 A v2.cengagenow.com/ilm/take Assignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionle Chapter 23 Homework eBook Print Item Compute Cash Provided by Operating Activities Horn Company's condensed income statement for the year ended December 31, 20-2, is shown. Net sales $1,237,000 747,000 Cost of goods sold Gross profit $490,000 132,000 Operating expenses Operating income $358,000 Other revenues and expenses: Interest revenue $500 Interest expense (1,100) Income before taxes (600) $357,400 125,000 Income tax expense Net income $232,400 Additional information obtained from Horn's comparative balance sheet and auxiliary records as of December 31, 20-2 and 20-1, is shown. 20-2 20-1 Accounts receivable $137,800 $123,500 Merchandise inventory 144,700 158,200 Accounts payable 45,400 86,000 Income tax payable 1,800 900 Supplies and prepayments 11,800 7,000 Accrued and withheld payroll taxes 2,500 3,600 Accrued interest receivable 90 200 Accrued interest payable 240 160 Depreciation expense for 20-2, included in operating expenses on the income statement, was $35,000. 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) For Year Ended December 31, 20-2 Cash flows from operating activities: Net income 232,400 Adjustments for changes in current assets and liabilities related to operating activities: Increase in accounts receivable 14,300 X Decrease in merchandise inventory 13,500 Decrease in accounts payable 40,600 X Increase in income tax payable 900 Increase in accounts payable Decrease in accounts receivable Decrease in supplies and prepayments Decrease in income tax payable X Noncash expenses: Depreciation expense DO Net cash provided by operating activities 1 A v2.cengagenow.com/ilm/take Assignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionle Chapter 23 Homework eBook Print Item Compute Cash Provided by Operating Activities Horn Company's condensed income statement for the year ended December 31, 20-2, is shown. Net sales $1,237,000 747,000 Cost of goods sold Gross profit $490,000 132,000 Operating expenses Operating income $358,000 Other revenues and expenses: Interest revenue $500 Interest expense (1,100) Income before taxes (600) $357,400 125,000 Income tax expense Net income $232,400 Additional information obtained from Horn's comparative balance sheet and auxiliary records as of December 31, 20-2 and 20-1, is shown. 20-2 20-1 Accounts receivable $137,800 $123,500 Merchandise inventory 144,700 158,200 Accounts payable 45,400 86,000 Income tax payable 1,800 900 Supplies and prepayments 11,800 7,000 Accrued and withheld payroll taxes 2,500 3,600 Accrued interest receivable 90 200 Accrued interest payable 240 160 Depreciation expense for 20-2, included in operating expenses on the income statement, was $35,000. 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) For Year Ended December 31, 20-2 Cash flows from operating activities: Net income 232,400 Adjustments for changes in current assets and liabilities related to operating activities: Increase in accounts receivable 14,300 X Decrease in merchandise inventory 13,500 Decrease in accounts payable 40,600 X Increase in income tax payable 900 Increase in accounts payable Decrease in accounts receivable Decrease in supplies and prepayments Decrease in income tax payable X Noncash expenses: Depreciation expense DO Net cash provided by operating activities