Portions of the Financial Statements for Horizon Telecom Are Provided

question 48

Essay

Portions of the financial statements for Horizon Telecom are provided below.
$$\begin{array} { | l r | } \hline { \begin{array} { c } \text { Horizon Telecom } \\\text { Selected Balance Sheet Data } \\\text { December 31, 2012 }\end{array} } \\\hline \text { Increase in accounts receivable } & \$ 6,000 \\\text { Increase in inventory } & 13,000 \\\text { Decrease in prepaid rent } & 9,000 \\\text { Increase in operating expenses payable } & 5,000 \\\text { Decrease in accounts payable } & 8,000 \\\text { Increase in income tax payable } & 20,000 \\\hline\end{array}$$
Prepare the operating activities section of the statement of cash flows for Horizon Telecom using the direct method.

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Definitions:

Ethical Business Practices

These are moral guidelines that inform how a business operates, ensuring fairness, transparency, and integrity in its dealings.

Social Responsibility

The concept that businesses should operate in a manner that benefits society at large, considering the impact of their activities on the environment, consumers, employees, communities, and stakeholders.

Community Expectations

The shared beliefs and standards that a society or group holds about what is acceptable or desirable behavior.

Statute Of Limitations

A law prescribing the maximum period during which legal action can be taken in a certain type of case.