HORIZON TELECOM Income Statement For the Year Ended December 31, 2021 Revenues $619,000 Expenses: Cost of goods sold $365,000 Operating expenses 113,000 Depreciation expense 31,000 Income tax expense 55,000 Total expenses 564,000 Net Income $ 55,000 HORIZON TELECOM Selected Balance Sheet Data December 31, 2021 Increase in accounts receivable Increase in inventory Decrease in prepaid rent Increase in operating expenses payable Decrease in accounts payable Increase in income tax payable $ 4,800 13,000 10,800 5,700 6,400 21,900 Prepare the operating activities section of the statement of cash flows for Horizon Telecom using the indirect method. (Amounts to be deducted and negative values should be indicated by minus sign.) HORIZON TELECOM Statement of Cash Flows For the year ended December 31, 2021 Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense Net cash flows from operating activities