Question

Omega Company's accountants have just completed the income statement and balance sheet for the year and have provided the following information (dollars in thousands):

INCOME STATEMENT
Sales revenue					$	20,730
Expenses
Cost of goods sold	$	9,170
Depreciation expense		3,100
Salaries expense		4,080
Rent expense		2,940
Insurance expense		930
Utilities expense		920
Interest expense on bonds		1,000
Loss on sale of investments		750				22,890
Net loss					$	(2,160	)

SELECTED BALANCE SHEET ACCOUNTS
	Current Year				Prior Year
Merchandise inventory	$	89			$	69
Accounts receivable		457				531
Accounts payable		246				216
Salaries payable		35				19
Rent payable		7				14
Prepaid rent		15				18
Prepaid insurance		30				10

Other Data:

The company issued $25,000, 8 percent bonds payable at par during the year.

Required:

1. Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. (List cash outflows as negative amounts. Enter your answers in thousands.)

2. Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. (List cash outflows and losses as negative amounts. Enter your answers in thousands.)

Answer 1