CHAP 13:
13.5.A,13.5.B
TREECE, INC.
Partial Statement of Cash Flows
For the Year Ended December 31, 2021
Cash flows from operating activities:
Net income
Add
Depreciation expense
:
$ 115,000
Decrease in accounts receivable
70,000
Increase in accounts payable to suppliers
8,000
Increase in accrued interest payable
9,000
Subtotal
Less
Increase in accrued interest receivable
:
$ 3,000
Increase in inventories
35,000
Increase in short-term prepayments
5,000
Decrease in accrued operating expenses payable
29,000
Decrease in accrued income taxes payable
13,000
Gain on sales of marketable securities
4,000
Net cash flow from operating activities
ROYCE INTERIORS, INC.
Partial Statement of Cash Flows
For the Year Ended December 31, 2021
Cash flows from operating activities:
Net income
Add
Depreciation expense
:
$ 49,000
Increase in accounts payable to suppliers
5,000
Increase in accrued interest payable
2,000
Subtotal
Less
Increase in accounts receivable
:
$ 10,000
Increase in accrued interest receivable
4,000
Increase in inventories
25,000
Increase in short-term prepayments
1,000
Decrease in accrued operating expenses payable
4,000
Decrease in accrued income taxes payable
2,000
Gain on sales of marketable securities
3,000
$ 223,000
202,000
$ 425,000
89,000
$ 336,000
$ 928,000
56,000
$ 984,000
49,000
Net cash flow from operating activities
$ 935,000