O The following income statement and selected balance sheet account data are available for Treece, Inc., at December 31, 2021 TREECE, INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2021 Revenue: Net sales Dividend income $2,850,000 104,000 Interest income 70,000 Gain on sales of marketable securities. Total revenue and gains 4,000 $3,028,000 Costs and expenses: Cost of goods sold Operating expenses Interest expense Income tax expense Total costs and expenses 2,805,000 $225,000 Net income Beginning of Year Selected account balances: Accounts receivable S 720,000 Accrued interest receivable Inventories 6,000 765,000 15,000 Short-term prepayments, Accounts payable (merchandise suppliers) 562,000 Accrued operating expenses payable 94,000 Accrued interest payable 12,000 Accrued income taxes payable 35,000 $1,550,000 980,000 185,000 90,000 End of Year! $ 650,000 9,000 800,000 20,000 570,000 65,000 21,000 22,000 Prev 10 of 10 # Ale 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 Required: a. Prepare a partial statement of cash flows, including only the operating activities section of the statement and using the direct method. (List cash outflows as negative amounts.) Answer is complete but not entirely correct. TREECE, INC. Partial Statement of Cash Flows For the Year Ended December 31, 2021 $ 2,920,000 171,000 (1,577,000) 176,000 103,000 Cash flows from operating activities: Cash received from customers Interest and dividends received Cash provided by operating activities Interest paid Income taxes paid Cash paid towards suppliers and operating expenses Cash used for operating activities Net cash flow from operating activities 3333 > $ 3,091,000 (1,298,000) $ 1,793.000