Business, 16.03.2020 22:02 sammuelanderson1539

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):

INCOME STATEMENT

Sales revenue $20,720
Expenses

Cost of goods sold $9,110
Depreciation expense 2,960
Salaries expense 4,090
Rent expense 2,830
Insurance expense 940
Utilities expense 890
Interest expense on bonds 510
Loss on sale of investments 800 22,130
Net loss $(1,440)

SELECTED BALANCE SHEET ACCOUNTS
Prior Year Current Year
Merchandise inventory $73 $87
Accounts receivable 538 445
Accounts payable 228 245
Salaries payable 17 32
Rent payable 14 7
Prepaid rent 11 8
Prepaid insurance 10 28

Required:

a. Prepare the cash flows from operating activities section of the statement of cash flows using the direct method.
b. Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

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Answer from: nelly4868

Cash flows under Direct Method

Cashflows under operating activities $

Cash received from customers (538-445+20720) 20,813

Cash paid for inventory (73-87+9110) (9,096)

Salaries Paid (17-32+4090) (4,075)

Accounts Paid (228-245) ( 17)

Rent Paid (14-7+2,830) ( 2,837)

Insurance Paid (10-28+940) (922)

Net Cash Provided by Operating Activities 3,866

Cashflows Under Indirect Method

Cashflows from Operating Activities $

Net Loss ( 1,440)

Increase in Inventory (73-87) (14)

Decrease in Receivable (538-445) 93

Increase in accounts payable (228-245) 17

Increase in salaries payable (17-32) 15

Decrease in rent payable (14-7) 7

Decrease in Prepaid Rent ( 11-8) 3

Increase in Prepaid Insurance (10-28) (18)

Net Cash used in operations (1,337)

Explanation:

Loss on investments is not accounted for in operating activities as it will be part of investing activities

Answer from: Quest

ok this has nothing to do with business

Answer from: Quest

what is wrong with black soap shampoo?

explanation:

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