BGP Electrical Supply is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Current Year Prior Year Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation $ 40,100 37,000 43,000 126,200 (34,800) $ 211,500 $ 40,800 3,800 48,300 95,500 23,100 $ 211,500 $ 32,000 32,200 41,100 103,500 (27,600) $181,200 $ 32, 300 4,300 56,700 75,000 12,900 $181,200 Accounts payable Accrued wages expense Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Other expenses Net income $140,000 90,000 39,800 $ 10, 200 Additional Data: a. Bought equipment for cash, $22,700. b. Paid $8,400 on the long-term note payable. c. Issued new shares of stock for $20,500 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $7,200; wages, $20,200; taxes, $6,700; other, $5,700. f. Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. (List cash outflows as negative amounts.) BGP ELECTRICAL SUPPLY Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Cash flows from investing activities: Cash flows from financing activities: 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): $ 20,690 INCOME STATEMENT Sales revenue Expenses Cost of goods sold $ 9,070 Depreciation expense 3,050 Salaries expense 4,180 Rent expense 3,000 Insurance expense 1,040 Utilities expense 810 Interest expense on bonds 1,200 Loss on sale of investments 810 Net loss 23,160 $ (2,470) Prior Year SELECTED BALANCE SHEET ACCOUNTS Current Year Merchandise inventory $ 85 Accounts receivable 453 Accounts payable 251 Salaries payable 38 Rent payable Prepaid rent Prepaid insurance $ 67 547 212 22 16 NO 12 Other Data: The company issued $24,000, 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.) 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 in 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 d. No dividends were declared or paid. e. Other expenses included depreciation, $14,300; wages, $13,200; taxes, $6,200; and other, $5,300. f. Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. (List cash outflows as negative amounts.) $ 12,000 For the Year Ended December 31, Current Year Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense $ Gain on sale of equipment Increase in accounts receivable Increase in merchandise inventory 14,300 Decrease in wages payable 13,300 25,300 Cash flows from investing activities: Cash received from sale of equipment Cash payments to purchase equipment Net cash used in investing activities Cash flows from financing activities: Cash receipts from issuing stock Cash payments on long-term note Net cash provided by financing activities Net increase in cash during the year Cash balance, January 1, current year Cash balance, December 31, current year BGP Electrical Supply is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Current Year Prior Year Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation $ 40,100 37,000 43,000 126,200 (34,800) $ 211,500 $ 40,800 3,800 48,300 95,500 23,100 $ 211,500 $ 32,000 32,200 41,100 103,500 (27,600) $181,200 $ 32, 300 4,300 56,700 75,000 12,900 $181,200 Accounts payable Accrued wages expense Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Other expenses Net income $140,000 90,000 39,800 $ 10, 200 Additional Data: a. Bought equipment for cash, $22,700. b. Paid $8,400 on the long-term note payable. c. Issued new shares of stock for $20,500 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $7,200; wages, $20,200; taxes, $6,700; other, $5,700. f. Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. (List cash outflows as negative amounts.) BGP ELECTRICAL SUPPLY Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Cash flows from investing activities: Cash flows from financing activities: 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): $ 20,690 INCOME STATEMENT Sales revenue Expenses Cost of goods sold $ 9,070 Depreciation expense 3,050 Salaries expense 4,180 Rent expense 3,000 Insurance expense 1,040 Utilities expense 810 Interest expense on bonds 1,200 Loss on sale of investments 810 Net loss 23,160 $ (2,470) Prior Year SELECTED BALANCE SHEET ACCOUNTS Current Year Merchandise inventory $ 85 Accounts receivable 453 Accounts payable 251 Salaries payable 38 Rent payable Prepaid rent Prepaid insurance $ 67 547 212 22 16 NO 12 Other Data: The company issued $24,000, 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.) 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 in 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 d. No dividends were declared or paid. e. Other expenses included depreciation, $14,300; wages, $13,200; taxes, $6,200; and other, $5,300. f. Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. (List cash outflows as negative amounts.) $ 12,000 For the Year Ended December 31, Current Year Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense $ Gain on sale of equipment Increase in accounts receivable Increase in merchandise inventory 14,300 Decrease in wages payable 13,300 25,300 Cash flows from investing activities: Cash received from sale of equipment Cash payments to purchase equipment Net cash used in investing activities Cash flows from financing activities: Cash receipts from issuing stock Cash payments on long-term note Net cash provided by financing activities Net increase in cash during the year Cash balance, January 1, current year Cash balance, December 31, current year