PROBLEM 13.4B Reporting Operating Cash Flows by the Direct Method LO13-3, LO13-8 The following income statement and selected balance sheet account data are available for Royce Interiors, Inc., at December 31, 2021. Revenue: Net sales Dividend income Interest income Gain on sales of marketable securities Total revenue and gains Costs and expenses: Cost of goods sold Operating expenses Interest expense Income tax expense Total costs and expenses. Net income longost ROYCE INTERIORS, INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2021 $1,300,000 300,000 60,000 110,000 End of Year $2,600,000 55,000 40,000 3,000 $2,698,000 $1,770,000 $928,000 Beginning of Year

PROBLEM 13.4B Reporting Operating Cash Flows by the Direct Method [ LO13-3, 9 LO13-8 The following income statement and selected balance sheet account data are avilable for Royee Interiors, Ine, at December 31 , 2021. Gain on sales or marketable sceurities Total revenue and gains Costs and expenses: Cost of goods sold Operuting expenses Interest expense Income tax expense Total costs and expenses 51,300,000 300.000 60,000 110,000 Net income E.ind of 51,770000 Year Besianiag Selected account balances: Accounts receivable $450,000 of Year Acerued interest receivable Inventories Short-term prepayments Aceounts payable (merchandise supplicrs) Acerued operating expenses payable Acerued interest payable Accrued income taxes payable 7,000575,0009,000415,00086,00010,00020,0003,000550,0008,000410,00090,0008,00022,000