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Business
Accounting
Cash Flows from Operating Activities: Accounts receivable Net cash flows from operating activities $ 0 Cash Flows from Operating Activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities $ 0

Cash Flows from Operating Activities: Accounts receivable Net cash flows from operating activities $ 0 Cash Flows from Operating Activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities $ 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
PARNELL COMPANY
Income Statement
For the Year Ended December 31, 2024
($ in thousands)
Revenues and gains:    
Sales $ 790  
Gain on sale of building 10 $ 800
Expenses and loss:    
Cost of goods sold $ 295  
Salaries 119  
Insurance 39  
Depreciation 122  
Interest expense 49  
Loss on sale of equipment 12 636
Income before tax   164
Income tax expense   82
Net income   $ 82
PARNELL COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2024 and 2023
($ in thousands)
  Year Change
2024 2023
Cash $ 133 $ 101 $ 32
Accounts receivable 323 217 106
Inventory 322 424 (102)
Prepaid insurance 67 87 (20)
Accounts payable 209 118 91
Salaries payable 104 94 10
Deferred tax liability 62 53 9
Bond discount 188 201 (13)

 

Required:

1. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the direct method.

2. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the indirect method.

Note: Enter your answers in thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.

Cash Flows from Operating Activities: Accounts receivable Net cash flows from operating activities $ 0
Transcribed Image Text:Cash Flows from Operating Activities: Accounts receivable Net cash flows from operating activities $ 0
Cash Flows from Operating Activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities $ 0
Transcribed Image Text:Cash Flows from Operating Activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities $ 0
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