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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku

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.

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:
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education