Portions of the financial statements for Horizon Telecom are provided below. 7 5611,000 5638 HORIZON TELECOX Income Statement For the Year Ended December 31, 2021 Revenues Expenses: Cost of goods sold $369,000 Operating expenses 113,000 Depreciation expense 26.000 Income tax expense 51, 500 Total expenses Net Income 559.500 $ 51, 500 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 $ 4,000 11,700 11,000 5, 900 6, 600 21,800 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 Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities S