Using the information presented in Problem 13.4A, 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 income in computing the cash flows from operating activities. sh Additional Information 1. Dividend revenue is recognized on the cash basis. All other income statement amounts 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. Place brackets around numbers representing cash paya ments. Show supporting computations for the following: 1. Cash received from customers. 2. Interest and dividends received. 3. Cash paid to suppliers and employees. 4. Interest paid. 5. Income taxes paid. b. Management of Treece, Inc., is exploring ways to increase the cash flow way that cash flows could be increased is through more aggressive com Assuming that management has already taken all the steps possible reduce expenses, describe two other ways that cash flows from operation flows from operations. Ox essive collection of receivables Sible to increase revenue and operations could be increase The following income statement and selected balance sheet account data are available for Treece, Inc., at December 31, 2015: g Cash Method $2,850,000 104,000 70,000 4,000 $3,028,000 TREECE, INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2015 Revenue: Net sales ........ Dividend income ........ Interest income . . . . . . . . ... Gain on sales of marketable securities ......... Total revenue and gains ........... Costs and expenses: $1,550,000 Cost of goods sold .................. 980,000 Operating expenses ........................ 185,000 Interest expense 90,000 Income tax expense Total costs and expenses .............. Net income ..... End of Year 2,805,000 $ 223,000 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