Chap. 12 - Problems A 4 P12-4 (Static) (Supplement A) Comparing Cash Flows from Operating Activities (Direct and Indirect Methods) 20 points 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): cBook $ 22,600 Print INCOME STATEMENT Sales revenue Expenses Cost of goods sold $ 10,500 Depreciation expense 2,000 Salaries expense 4,070 Rent expense 3,200 Insurance expense 1,100 Utilities expense 850 Interest expense on bonds 450 Loss on sale of investments 650 Net loss References 22,820 (220) SELECTED BALANCE SHEET ACCOUNTS Current Year Merchandise inventory $ 150 Accounts receivable 440 Accounts payable 285 Salaries payable 38 Rent payable Prepaid rent 6 Prepaid insurance 17 Prior Year $ 65 620 212 23 10 7 4 Other data: The company issued $30,000, 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.) OMEGA COMPANY Cash Flows from Operating Activities Direct Method (in thousands) Cash flows from operating activities: 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.) 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