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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
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 taxes | 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 $115,000. |
Prepare a partial statement of cash flows for the current year, showing the computation of net cash flows from operating activities by the indirect method. (Input all amounts as positive values. Omit the "$" sign in your response.) |
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