Return to question 6 The following income statement and selected balance sheet account data are available for Treece, Inc., at December 31, 2018. 35 points TREECE, INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Revenue: Net sales Dividend income Interest income Gain on sales of marketable securities Total revenue and gains 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 Net income $2,850,000 104,000 70,000 4,000 $3,028,000 2,805,000 $ 223,000 End of Year Beginning of Year Selected account balances: Accounts receivable Accrued interest receivable Inventories Short-term prepayments Accounts payable (merchandise suppliers) Accrued operating expenses payable Accrued interest payable Accrued income taxes payable $ 650,000 9,000 800,000 20,000 570,000 65,000 21,000 22,000 $ 720,000 6,000 765,000 15,000 562,000 94,000 12,000 35,000 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. X Answer is complete but not entirely correct. TREECE, INC. Partial Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities: Cash received from customers 2,920,000 171,000 Interest and dividends received Cash provided by operating activities $ 3,091,000 Cash paid to suppliers and employees Interest paid Income taxes paid Cash disbursed for operating activities 1,655,000 X 176,000 X $ 103,000 1,934,000 $ 5,025,000 Net cash flow from operating activities