Prepare partial statement of cash flows

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Question - 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: End of year Beginning of year

Accounts receivable $650,000 $720,000

Interest receivable 9,000 6,000

Inventories 800,000 765,000

Short term prepayments 20,000 15,000

Accounts payable 570,000 562,000

Accrued operating expense payable 65,000 94,000

Accrued interest payable 21,000 12,000

Accrued income tax payable 22,000 35,000

Additional Information -

1. Dividend revenue is recognized on cash basis

2. Operating expenses include depreciation expense of $115,000

Required - Prepare 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

Reference no: EM132574852

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