Extracted text: Chapter 13 Statement of Cash Flows Additional Information 1. Dividend revenue is recognized on the cash basis. All other income statement amounts are recognized on the accrual basis. 2. Operating expenses include depreciation expense of $115,000. Instructions a. Prepare a partial statement of cash flows, including only the operating activities section of the statement and using the direct method. Place brackets around numbers representing cash pay- ments. Show supporting computations for the following: 1. Cash received from customers. 2. Interest and dividends received. 3. Cash paid to suppliers and employees. 4. Interest paid. 5. Income taxes paid. b. Management of Treece, Inc., is exploring ways to increase the cash flows from operations. One way that cash flows could be increased is through more aggressive collection of receiv- ables. Assuming that management has already taken all the steps possible to increase rev- enue and reduce expenses, describe two other ways that cash flows from operations could be increased. Uring th
Extracted text: The following income statement and selected balance sheet account data are available for Treece, ties than for operating activities? Explain. Inc., at December 31, 2018. sh nod TREECE, INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Revenue: - Net sales $2,850,000 - Dividend income 104,000 Interest income 70,000 Gain on sales of marketable securities 4,000 Total revenue and gains $3,028,000 Costs and expenses: - Cost of goods sold $1,550,000 Operating expenses 980,000 - Interest expense . 185,000 Income tax expense 90,000 Total costs and expenses 2,805,000 Net income $ 223,000 Beginning of Year End of Year Selected account balances: Accounts receivable 650,000 $ 720,000 Accrued interest receivable 9,000 6,000 Inventories ... 800,000 765,000 20,000 15,000 Short-term prepayments - Accounts payable (merchandise suppliers) Accrued operating expenses payable 570,000 562,000 65,000 94,000 21,000 12,000 Accrued interest payable 22,000 35,000 Accrued income taxes payable