Interest and dividends received.

Cash paid to suppliers and employees.

Interest paid.

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 receivables.

Assuming that management has already taken all the steps possible to increase revenue and

reduce expenses, describe two other ways that cash flows from operations could be increased.

Q$2$ REPORTING OPERATING CASH FLOWS BY THE INDIRECT METHOD

Using the information presented in Problem above, prepare a partial statement of cash flows for the

current year, showing the computation of net cash flows from operating activities by the indirect

method. Explain why the decline in accounts receivable over the year was added to net income in

computing the cash flows from operating activities.