Omega Corporation’s comparative balance sheet accounts worksheet at December 31, 20X1 and 20X0, follow, together with a column showing the increase (decrease) from 20X0 to 20X1.

Additional Information:

• On December 31, 20X0, Omega acquired 25% of Belle Company’s common stock for $275,000. On that date, the carrying value of Belle’s assets and liabilities, which approximated their fair values, was $1,100,000. Belle reported income of $120,000 for the year ended December 31, 20X1. No dividend was paid on Belle’s common stock during the year.

• During 20X1, Omega loaned $300,000 to Chase Company, an unrelated company. Chase made the first semiannual principal repayment of $30,000 plus interest at 10%, on October 1, 20X1.

• On January 2, 20X1, Omega sold equipment for $40,000 cash that cost $60,000 and had a carrying amount of $35,000.

• On December 31, 20X1, Omega entered into a finance lease for an office building. The present value of the annual rental payments is $400,000, which equals the building’s fair value. Omega made the first rental payment of $60,000, when due, on January 2, 20X2.

• Net income for 20X1 was $360,000.

• Omega had the following dividends that were either declared or paid in 20X1:

Required:

Prepare an indirect method statement of cash flows for Omega Corporation for the year ended December 31, 20X1.

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Comparative Balance Sheet Worksheet December 31, 20X1 20X0 Increase (Decrease) Cash Accounts receivable $ 800,000 $ 700,000 1,168,000 $ 100,000 (40,000) 1,128,000 Inventories 1,850,000 3,307,000 (1,165,000) 305,000 1,715,000 2,967,000 (1,040,000) 275,000 135,000 Property, plant, and equipment Accumulated depreciation Investment in Belle Company 340,000 (125,000) 30,000 Loan receivable 270,000 -0- 270,000 $ 5,785,000 $ 955,000 50,000 90,000 $ 710,000 $ 6,495,000 $ 1,015,000 30,000 80,000 Total assets $ 60,000 (20,000) (10,000) 400,000 Accounts payable Income taxes payable Dividends payable Capital lease obligation Capital stock, common, $1 par Additional paid-in capital Retained earnings Total liabilities and stockholders' equity 400,000 500,000 1,500,000 2,970,000 $ 6,495,000 -0- 500,000 1,500,000 2,690,000 $ 5,785,000 -0- -0- 280,000 $ 710,000