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Cash Flows from Operating Activities: 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: 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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[The following information applies to the questions displayed below.]

Portions of the financial statements for Parnell Company are provided below.

PARNELL COMPANY
Income Statement
For the Year Ended December 31, 2024
($ in thousands)
Revenues and gains:    
Sales $ 720  
Gain on sale of building 11 $ 731
Expenses and loss:    
Cost of goods sold $ 260  
Salaries 112  
Insurance 32  
Depreciation 115  
Interest expense 42  
Loss on sale of equipment 10 571
Income before tax   160
Income tax expense   80
Net income   $ 80
PARNELL COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2024 and 2023
($ in thousands)
  Year Change
2024 2023
Cash $ 126 $ 108 $ 18
Accounts receivable 316 224 92
Inventory 329 417 (88)
Prepaid insurance 69 80 (11)
Accounts payable 202 125 77
Salaries payable 118 101 17
Deferred tax liability 76 60 16
Bond discount 180 208 (28)

 

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: Net cash flows from operating activities $ 0
Transcribed Image Text:Cash Flows from Operating Activities: 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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