P12-4 (Algo) (Supplement A) Comparing Cash Flows from Operating Activities (Direct and Indirect Methods) 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): $ 20,720 INCOME STATEMENT Sales revenue Expenses Cost of goods sold $ 9, 140 Depreciation expense 2,920 Salaries expense 4, 150 Rent expense 2,880 Insurance expense 1,090 Utilities expense 910 Interest expense on bonds 850 Loss on sale of investments 760 Net loss 22,700 $ (1,980) SELECTED BALANCE SHEET ACCOUNTS Current Year Merchandise inventory $ 89 Accounts receivable 441 Accounts payable 254 Salaries payable 40 Rent payable 8 Prepaid rent 15 Prepaid insurance 20 Prior Year $ 74 543 225 13 16 18 9 Other Data: The company issued $17,000, 10 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.) 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 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