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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): Sales revenue Expenses Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Utilities expense Interest expense on bonds Loss on sale of investments Net loss INCOME STATEMENT SELECTED BALANCE SHEET ACCOUNTS Current Year Merchandise inventory Accounts receivable Accounts payable Salaries payable Rent payable Prepaid rent Prepaid insurance $ 103 449 247 39 7 18 33 Prior Year $9,160 2,980 4,230 2,870 980 750 600 730 $ 67 546 225 22298 18 14 21 10 $ 20,640 22,300 $(1,660) Other Data: The company issued $15,000, 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. 2. Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

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): Sales revenue Expenses Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Utilities expense Interest expense on bonds Loss on sale of investments Net loss INCOME STATEMENT SELECTED BALANCE SHEET ACCOUNTS Current Year Merchandise inventory Accounts receivable Accounts payable Salaries payable Rent payable Prepaid rent Prepaid insurance $ 103 449 247 39 7 18 33 Prior Year $9,160 2,980 4,230 2,870 980 750 600 730 $ 67 546 225 22298 18 14 21 10 $ 20,640 22,300 $(1,660) Other Data: The company issued $15,000, 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. 2. Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 Expenses Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Utilities expense Interest expense on bonds Loss on sale of investments Net loss SELECTED BALANCE SHEET ACCOUNTS Current Year Merchandise inventory Accounts receivable Accounts payable Salaries payable Rent payable Prepaid rent Prepaid insurance $ 103 449 247 39 18 33 $ 20,640 $9,160 2,980 4,230 1 2,870 980 750 600 730 Prior Year $ 67 546 225 18 14 21 10 22,300 $ (1,660) Other Data: The company issued $15,000, 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. 2. Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.
Transcribed Image Text: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 Expenses Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Utilities expense Interest expense on bonds Loss on sale of investments Net loss SELECTED BALANCE SHEET ACCOUNTS Current Year Merchandise inventory Accounts receivable Accounts payable Salaries payable Rent payable Prepaid rent Prepaid insurance $ 103 449 247 39 18 33 $ 20,640 $9,160 2,980 4,230 1 2,870 980 750 600 730 Prior Year $ 67 546 225 18 14 21 10 22,300 $ (1,660) Other Data: The company issued $15,000, 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. 2. Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. Note: List cash outflows as negative amounts. Enter your answers in thousands. OMEGA COMPANY Cash Flows from Operating Activities Direct Method (in thousands) Cash flows from operating activities: Required 1 Required 2 Complete this question by entering your answers in the tabs below. < Required 1 Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. Note: List cash outflows and losses as negative amounts. Enter your answers in thousands. Cash flows from operating activities: OMEGA COMPANY Cash Flows from Operating Activities Indirect Method (in thousands) Total adjustments Required 2 > Adjustments to reconcile net loss to net cash provided by operating activities:
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. Note: List cash outflows as negative amounts. Enter your answers in thousands. OMEGA COMPANY Cash Flows from Operating Activities Direct Method (in thousands) Cash flows from operating activities: Required 1 Required 2 Complete this question by entering your answers in the tabs below. < Required 1 Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. Note: List cash outflows and losses as negative amounts. Enter your answers in thousands. Cash flows from operating activities: OMEGA COMPANY Cash Flows from Operating Activities Indirect Method (in thousands) Total adjustments Required 2 > Adjustments to reconcile net loss to net cash provided by operating activities:
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