Prepare a complete cash flow statement for the year


Assignment Problem: Listed below are some balances of Omega, Inc for the year ending December 31, 2013 and as of December 31, 2012 and 2013:

Year ending 12/31/13

Revenue 3,000,000

Cost of goods sold 1,600,000

Rent expense 115,000

Insurance expense 80,000

Interest expense 5,000

Income tax expense 100,000

Payroll and benefit expense 225,000

Depreciation cost 70,000

Dividend income 30,000

Gain on sale of investments 45,000

Loss on building fire 35,000

Interest income 25,000

General and administrative cost 155,000

Impairment 20,000

As of 12/31/12 12/31/13

Cash 100,000 1,595,000

Accounts receivable 325,000 350,000

Interest receivable 12,000 10,000

Inventory 400,000 375,000

Accrued payroll and benefits 75,000 88,000

Accrued rent 50,000 50,000

Prepaid insurance 80,000 60,000

Accrued general and administrative 55,000 50,000

Accrued income tax 20,000 65,000

The following is additional information with regards Omega during the year ending December 31, 2013:

Purchased $200,000 of machinery with a note payable

Paid a dividend on preferred stock of $100,000

Made capital lease payments of $80,000

Issued a $200,000 bond

Purchased Delta Stock for $225,000

Borrowed $700,000 under its line of credit

Purchased land for $50,000

Sold a building for $100,000 for $20,000 cash and $80,000 mortgage

Loaned $125,000 to the CEO

Sold a franchise for $130,000

Proceeds from sale of UAL stock $100,000

Made mortgage payments of $30,000

Repurchased Omega stock for $15,000

Received insurance proceeds of $125,000 related to building fire

Issued $150,000 of Omega common stock

Requirements: Using the information above for Omega Inc

Question 1: Prepare a complete cash flow statement for the year ending December 31, 2013 using the indirect method. The statement must include all titles, headings, captions, sections, totals, subtotals and disclosures one would normally expect on the face of the cash flow statement.

Question 2: Prepare the operating section of the cash flow statement for the year ending December 31, 2013 using the direct method.

Question 3: The cash flow statements should be prepared in proper form and format including all relevant headings, sections, captions, titles, totals and subtotals.

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Accounting Basics: Prepare a complete cash flow statement for the year
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