Reference no: EM132562818
The following income statement and selected balance sheet account data are available for Treece, Inc., at December 31, 2013
Revenue:
Net sales = $2,850,000
Dividend Income = $104,000
Interest income = 70,000
Gain on sale of marketable securities = 4,000
Total revenue = $3,028,000
Costs and expenses:
Cost of goods sold = $1,550,000
Operating expenses = 980,000
Interest expense = 185,000
Income taxes = 90,000
Total Costs and expenses = $2,805,000
Net income = $223,000
Selected account balances:
Accounts receivable
End of year $650,000
Beginning of year $720,000
Interest receivable
End of year 9,000
Beginning of year 6,000
Inventories
End of year 800,000
Beginning of year 765,000
Short term prepayments
End of year 20,000
Beginning of year 15,000
Accounts payable
End of year 570,000
Beginning of year 562,000
Accrued operating expense payable
End of year 65,000
Beginning of year 94,000
Accrued interest payable
End of year 21,000
Beginning of year 12,000
Accrued income tax payable
End of year 22,000
Beginning of year 35,000
Additional Information:
1. Dividend revenue is recognized on cash basis
2. Operating expenses include depreciation expense of $115,000
Question 1: Prepare a partial statement of cash flows including only the operating activities section of the statement. Show computations for following:
1. Cash received from customers
2. Interest and dividend received
3. Cash paid to suppliers and employees
4. Interest paid
5. Income taxes paid