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In: Accounting

Omega Company's accountants have just completed the income statement and balance sheet for the year and...

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.)

Solutions

Expert Solution

ekkarill92 answered 3 years ago
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