The following are comparative balance sheets and an income statement for OMG Company.

OMG Company

Balance Sheets

As of December $31$

$20122011$

Assets:

Cash $$30,000$ $$110,000$

Accounts receivable $187,500105,000$

Less: Allowance for Doubtful Accounts $(4,000)-0-$

Inventory $183,000230,000$

Property, Plant, and Equipment $125,000-0-$

Less: Accumulated Depreciation $(10,000)-0-$

Long$-$term investments $-0-65,000$

Totals $$511,500$ $$510,000$

Liabilities and shareholders$$ equity:

Accounts payable $*$ $ $67,000$ $$120,000$

Operating expenses payable $22,50025,000$

Interest Payable $1,000-0-$

Note Payable, due $7/15/16125,000-0-$

Bonds payable $70,000100,000$

Common stock $125,000115,000$

Retained earnings $101,000150,000$

Totals $$511,500$ $$510,000$

OMG Company

Income Statement

For the Year Ended December $31,2012$

Sales $$580,000$

Cost of Goods sold $381,500$

Gross Profit $198,500$

Operating expenses$**192,000$

Income from operations $6,500$

Other expenses:

Interest expense $(1,000)$

Loss on sale of long$-$term investment $(7,500)$

Net Loss $$(2,000)$

Additional Information $2012$:

$*$ used for purchases of merchandise inventory only

$**-$ Included in Operating expenses is depreciation expense of $$10,000$ and bad debts

expense of $$4,000$

$$ No Property, Plant or Equipment was sold in $2012$

$$ During $2012$ OMG acquired $$125,000$ of equipment by signing a long$-$term, $10\%$ note

payable for $$125,000$

$$ Long$-$term investments were sold for cash

$$ Any change in Bonds Payable relates to repayment of principle $($face$)$ amounts.

$$ All issuances of Common Stock $($No par value$)$ were for cash

$$ Cash dividends were declared and paid in $2012.$

$$ No stock dividends were declared or issued in $2012$

Prepare the Statement of Cash Flows of OMG Company for the year ended December $31,2012.$

A$.$ Prepare from the information above a statement of cash flows $($direct method$)$ using the

$$Spreadsheet Approach$$ we demonstrated in class.

B$.$ Using your spreadsheet from A above prepare a Statement of Cash Flows, in good form, for

the year ended December $31,2012($A reconciliation schedule is not required.$)$

C$.$ Prepare from the financial statements$/$information used in A above the Operating Activities

section $($indirect method$)$ of the SCF spreadsheet for the year ended December $31,2012.$