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 indi- rect method. Explain why the decline in accounts receivable over the year was added to net income in computing the cash flows from operating activities.

The following income statement and selected balance sheet account data are available for Treece, Inc., at December 31, 2015: 013-8 13.4A Operating Cash he Direct Method TREECE, INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2015 Revenue: $2,850,000 104,000 70,000 4,000 $3,028,000 Net sales... Dividend income Gain on sales of marketable securities Total revenue and gains Costs and expenses: Operating expenses . . Interest expense Income tax expense . . $1,550,000 980,000 185,000 90,000 .. Total costs and expenses . .. Net income 2,805,000 $223,000 End of Year Beginning of Year Selected account balances: 650,000 9,000 800,000 20,000 .. . Accrued interest receivable . nventories Short-term prepayments Accounts payable (merchandise suppliers).. Accrued operating expenses payable Accrued interest payable.... 720,000 6,000 765,000 15,000 562,000 94,000 12,000 35,000 570,000 65,000 21,000 22,000 reduce expenses, describ two olle Using the information presented in Probiem 13.4A, prepare a partial statement of cash for the current year, showing the computation of net cash flows from operating a PROBLEM 13.SA ctivities by the Operating Cash indirect method. Explain why the decline in accounts receivable over the year w Flows by the Indirect income in computing the cash flows from operating activities. rt Century Technologies. Your staff has prepared an income statement