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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 Merchandise inventory Accounts receivable Accounts payable Salaries payable Rent payable Prepaid rent Prepaid insurance Current Year $93 445 257 39 10 22 18 $ 9,060 2,950 Prior Year $75 548 212 15 20 25 10 4,190 2,900 960 850 760 690 $ 20,600 22,360 $ (1,760) Other Data: The company issued $19,000, 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 Merchandise inventory Accounts receivable Accounts payable Salaries payable Rent payable Prepaid rent Prepaid insurance Current Year $93 445 257 39 10 22 18 $ 9,060 2,950 Prior Year $75 548 212 15 20 25 10 4,190 2,900 960 850 760 690 $ 20,600 22,360 $ (1,760) Other Data: The company issued $19,000, 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): 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 Merchandise inventory Accounts receivable. Accounts payable Salaries payable INCOME STATEMENT Rent payable Prepaid rent Prepaid insurance Current Year Required 1 Required 2 $93 445 257 39 10 22 18 Prior Year Cash flows from operating activities: $ 9,060 2,950 4,190 2,900 960 850 760 690 $ 75 548 212 15 20 25 10 Other Data: The company issued $19,000, 8 percent bonds payable at par during the year. Required: OMEGA COMPANY Cash Flows from Operating Activities Direct Method (in thousands) 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. $ 20,600 Complete this question by entering your answers in the tabs below. 22,360 $(1,760) 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. < Required 1 Required 2 >
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): 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 Merchandise inventory Accounts receivable. Accounts payable Salaries payable INCOME STATEMENT Rent payable Prepaid rent Prepaid insurance Current Year Required 1 Required 2 $93 445 257 39 10 22 18 Prior Year Cash flows from operating activities: $ 9,060 2,950 4,190 2,900 960 850 760 690 $ 75 548 212 15 20 25 10 Other Data: The company issued $19,000, 8 percent bonds payable at par during the year. Required: OMEGA COMPANY Cash Flows from Operating Activities Direct Method (in thousands) 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. $ 20,600 Complete this question by entering your answers in the tabs below. 22,360 $(1,760) 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. < Required 1 Required 2 >
Required 1 Required 2 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. OMEGA COMPANY Cash Flows from Operating Activities Indirect Method (in thousands) Cash flows from operating activities: Adjustments to reconcile net loss to net cash provided by operating activities: Total adjustments < Required 1 Required 2 >
Transcribed Image Text:Required 1 Required 2 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. OMEGA COMPANY Cash Flows from Operating Activities Indirect Method (in thousands) Cash flows from operating activities: Adjustments to reconcile net loss to net cash provided by operating activities: Total adjustments < Required 1 Required 2 >
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