pare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the d. (Enter your answers in thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be minus sign.) Flows from Operating Activities: ments for noncash effects:
pare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the d. (Enter your answers in thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be minus sign.) Flows from Operating Activities: ments for noncash effects:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Required!
2. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the indirect
method. (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:
Adjustments for noncash effects:
Changes in operating assets and liabilities:
Net cash flows from operating activities
Transcribed Image Text:Portions of the financial statements for Parnell Company are provided below.
Revenues and gains:
Sales
For the Year Ended December 31, 2021
($ in thousands)
Gain on sale of building
Expenses and loss:
Cost of goods sold
PARNELL COMPANY
Income Statement
Salaries
Insurance
Depreciation
Interest expense
Loss on sale of equipment
Income before tax
Income tax expense
Net income
Cash
Accounts receivable
Inventory
Prepaid insurance
Accounts payable
Salaries payable
Deferred tax liability
Bond discount
$ 780
11
December 31, 2021 and 2020
($ in thousands)
$ 290
118
38
121
48
12
PARNELL COMPANY
Selected Accounts from Comparative Balance Sheets
$ 791
627
164
82
$82
208
106
64
186
Year
2021
2020
$ 132 $ 102
322
218
323
423
68
86
119
95
54
202
Change
30
104
(100)
(18)
89
11
10
(16)
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