Answer:
Cash flow from Operating Activities
Net Income                                              $ 53,500
Adjust for Non-Cash items :
Depreciation expense                               25,000
Adjust for Working Capital items :
Increase in accounts receivable            ($ 5,300)
Increase in inventory                               ($11,300) 
Decrease in prepaid rent                          $9,900 
Increase in operating expenses payable$5,000 
Decrease in accounts payable                ($7,400)
 Increase in income tax payable             $21,900 
Net Cash from Operating Activities        $91,300
Explanation:
Prepare Operating activities section of the statement of cash flows for Horizon Telecom as above.