Portions of the financial statements for Horizon Telecom are provided below. HORIZON TELECOM Income Statement For the Year Ended December 31, 2018 $618,000 Revenues Expenses $366,000 Cost of goods sold Operating expenses 110,000 29,000 Depreciation expense 56,500 Income tax expense Total expenses 561,500 Net Income 56,500 HORIZON TELECOM Selected Balance Sheet Data December 31, 2018 4,500 Increase in accounts receivable Increase in inventory 11,300 Decrease in prepaid rent 10,900 Increase in operating expenses payable 5,600 7,000 Decrease in accounts payable Increase in income tax payable 21,200