The following income statement and selected balance sheet account data are available for Treece, Inc., at December 31, 2011: TREECE, INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2011 Revenue: Net sales $ 2,850,000 Dividend income 104,000 Interest income 70,000 Gain on sales of marketable securities 4,000 ________________________________________ Total revenue and gains $ 3,028,000 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 $ 2,805,000 ________________________________________ Net income $ 223,000 ________________________________________________________________________________ End of Year Beginning of Year Selected account balances: Accounts receivable $ 650,000 $ 720,000 Accrued interest receivable 9,000 6,000 Inventories 800,000 765,000 Short-term prepayments 20,000 15,000 Accounts payable (merchandise suppliers) 570,000 562,000 Accrued operating expenses payable 65,000 94,000 Accrued interest payable 21,000 12,000 Accrued income taxes payable 22,000 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 $115,000. Instructions a. Prepare a partial statement of cash flows, including only the operating activities section of the statement and using the direct method. (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.) TREECE, INC. Partial Statement of Cash Flows For the Year Ended December 31, 2011 Cash flows from operating activities: $ $ ________________________________________ Cash operating activities $ $ $ $ ________________________________________ Cash operating activities $ ________________________________________ Net cash flow from operating activities $