Omega Company's accountants have just completed the income statement and balance sheet for the year and provided the following information: INCOME STATEMENT Sales Revenue COGS Gross Profit Depreciation Expense Salaries Expense Rent Expense Insurance Expense Utilities Expense Interest Expense Loss on Sale of Investments Net Loss TL 22.600.000 (10.500.000 12.100.000 (2.000.000) (4.070.000) (3.200.000) (1.100.000) (850.000) (450.000) (650.000) (220.000) Inventory Accounts Receivable Accounts Payable Salaries Payable Rent Payable Prepaid Rent Prepaid Insurance SELECTED BALANCE SHEET ACCOUNTS 2015 2016 TL 65.000 TL 150.000 620.000 440.000 212.000 285.000 23.000 38.000 10.000 4.000 7.000 6.000 4.000 17.000 N. Prepare cash flows from operating activities section of the statement of cash flows using direct method. ANSWER: OMEGACOMPANY Cash Flows from Operating Activities Direct Method Cash flows from operating activities: Cash receipts from customers Cash payments to suppliers. Cash payments for salaries Cash payments for rent Cash payments for insurance Cash payments for utilities Cash payments for interest Net cash provided by operating activities