Omega Company's accountants just filled out the year's income statement and balance sheet and provided the following
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Question:
Omega Company's accountants just filled out the year's income statement and balance sheet and provided the following information (in thousands of dollars):
INCOME STATEMENT | |||||||
sales revenue | $ | 20.690 | |||||
Expenses | |||||||
cost of goods sold | $ | 9.110 | |||||
depreciation expense | 2.960 | ||||||
Salary expenses | 4.090 | ||||||
Rent | 2.830 | ||||||
insurance cost | 940 | ||||||
Utilities expense | 890 | ||||||
Bond interest expense | 510 | ||||||
Loss from the sale of investments | 800 | 22.130 | |||||
net loss | $ | (1.440 | ) | ||||
SELECTED BALANCE SHEET ACCOUNTS | |||||||
Previous year | current year | ||||||
goods inventory | $ | 73 | $ | 87 | |||
Accounts receivable | 538 | 445 | |||||
Accounts payable | 228 | 245 | |||||
Salaries to be paid | 17 | 32 | |||||
rent to be paid | 14 | 7 | |||||
prepaid rental | 11 | 8 | |||||
prepaid insurance | 10 | 28 | |||||
Other data:
The company issued $17,000 bonds during the year, 6% payable at par.
Necessary:
1. Prepare cash flows from operating activities of the cash flow statement using the direct method. (List cash outs as negative amounts. Enter your answers in thousands.)
2. Prepare the cash flow statement of operating cash flows using the indirect method. (List cash outs as negative amounts. Enter your answers in thousands.)
Related Book For
Auditing An International Approach
ISBN: 978-1259087462
7th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley
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