Alpha Company's accountants have just completed the income statement and balance sheet for the year and have provided the following information (dollars in thousands):

Other Data:
The company issued $20,000, 8 percent bonds payable 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 indirectmethod.

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INCOME STATEMENT Sales revenue $20,800 Expenses Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Utilities expense $9,030 2,900 4,070 2,800 900 720 Interest expense on bonds Loss on sale of investments 600 650 21,670 $ (870) Net loss SELECTED BALANCE SHEET ACCOUNTS 2012 2013 $ 65 $ 84 Merchandise inventory Accounts receivable 530 440 Accounts payable Salaries payable Rent payable Prepaid rent Prepaid insurance 212 245 23 31 8. 4 4 7. 17