Beta Company's accountants just completed the financial statements for the year and have provided the following information (in thousands):

Other data:
The company signed long-term notes for \(\$ 20,000\) during the year.
Required:
1. Prepare the operating activities section of the statement of cash flows for 2011 by using the indirect method.
2. As a financial analyst, would you prefer to see the cash flow from operations reported using the direct method or the indirect method? Justify your answer.
3. As the accountant who prepares the company's statement of cash flows, would you prefer to use the direct or the indirect method to report the cash flow from operations? Explain.

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Sales revenue Income Statement for 2011 Expenses and losses: Cost of sales Depreciation. Salaries Rent Insurance Utilities Interest Profit $20,600 $9,000 2,000 5,000 2,500 800 700 600 20,600 0 Selected Slatement of Financial Position Accounts 2011 2010 Merchandise inventory Trade receivables $ 82 $ 60 380 450 Trade payables Sa aries payable 240 210 29 20 Rent payable 2 6 Prepaid rent 2 7 Prepaid insurance 14 15