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 investments Loss on sale Net loss INCOME STATEMENT SELECTED BALANCE SHEET ACCOUNTS Merchandise inventory. Accounts receivable Accounts payable Salaries payable Rent payable Prepaid rent Prepaid insurance Current Year $90 456 264 35 13 12 27 Required 1 Required 2 $ 9,160 2,900 4,230 2,800 Prior Year $ 70 533 214 Cash flows from operating activities: 16 26 15 7 920 860 720 660 Other Data: The company issued $24,000, 6 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. Adjustments to reconcile net loss to net cash provided by operating activities: $ 20,670 Complete this question by entering your answers in the tabs below. 22,250 $ (1,580) OMEGA COMPANY Cash Flows from Operating Activities Indirect Method (in thousands) 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'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 investments Loss on sale Net loss INCOME STATEMENT SELECTED BALANCE SHEET ACCOUNTS Merchandise inventory. Accounts receivable Accounts payable Salaries payable Rent payable Prepaid rent Prepaid insurance Current Year $90 456 264 35 13 12 27 Required 1 Required 2 $ 9,160 2,900 4,230 2,800 Prior Year $ 70 533 214 Cash flows from operating activities: 16 26 15 7 920 860 720 660 Other Data: The company issued $24,000, 6 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. Adjustments to reconcile net loss to net cash provided by operating activities: $ 20,670 Complete this question by entering your answers in the tabs below. 22,250 $ (1,580) OMEGA COMPANY Cash Flows from Operating Activities Indirect Method (in thousands) 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.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business
Section: Chapter Questions
Problem 4SEA: FINANCIAL RATIOS Based on the financial statements for Jackson Enterprises (income statement,...
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