PARNELL COMPANYIncome StatementFor the Year Ended December 31, 2021($ in thousands)Revenues and gains:SalesGain on sale of buildingExpenses and loss:Cost of goods soldSalaries$89011$901$345129Insurance53DepreciationInterest expenseLoss on sale of equipment1325913731170Income before taxIncome tax expense85Net income$ 85PARNELL COMPANYSelected Accounts from Comparative Balance SheetsDecember 31, 2021 and 2020($ in thousands)Year2020Change2021$ 152Cash9161Accounts receivableInventoryPrepaid insuranceAccounts payableSalaries payableDeferred tax liabilityBond discount342207135312443(131)(49)120365710622810812078846121817181(37) Required:2. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the indirectmethod. (Enter your answers in thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be indicatedwith a minus sign.)Cash Flows from Operating Activities:Adjustments for noncash effects:Changes in operating assets and liabilities:

Cash flows from operating Activities: Cash flows from operating activities Particulars Amount…

Answered: PARNELL COMPANY Income Statement For…

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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125. accountig
18. When using the indirect method to prepare the operating section of a statement of cash flows, which of the following is deducted from net income to compute cash provided by/used by operating activities? Decrease in accounts receivable. Gain on sale of land. Amortization of patent. All of these are deducted from net income to arrive at cash flow from operating activities.
Kennedy, Inc. reported the following data: Net income Depreciation expense Loss on disposal of equipment Gain on sale of building Increase in accounts receivable Decrease in accounts payable Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. Use the minus sign to indicate cash outflows, a decrease in cash, cash payments, or any negative adjustments. Cash flows from operating activities: $152,168 12,599 (10,151) 19,285 8,486 (3,847) Kennedy, Inc. Statement of Cash Flow Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: 0 000 0
Required Information [The following information applies to the questions displayed below.] The following financial statements and additional information are reported. Assets Cash At December 31 Comparative Balance Sheets Accounts receivable, net Inventory Prepaid expenses Total current assets Machinery Accumulated depreciation-Machinery Total assets Liabilities Accounts payable Salaries payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, no par value Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Year 2 $ 96,100 93,500 82,800 6,300 278,708 143,000 (36,500) $ 385,200 Income Statement For Year Ended December 31, Year 2 Other gains (losses) Gain on sale of machinery Income before taxes Income taxes expense Net income. $ 44,000 7,900 5,300 57,299 49,000 106,200 258,000 21,000 $385,200 Year 1 $ 63,000 70,000 115,000 9,200…
Subject: acounting
4. What is the correct answer?
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Hemlock Company developed the following data for the current year: Beginning work in process inventory $275,000 Direct materials used 160,000 Actual overhead 340,000 Overhead applied 225,000 Cost of goods manufactured 265,000 Total manufacturing costs 860,000 Hemlock Company's direct labor cost for the year is?
a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from (used for) operating activities: Net income ✓ Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation expense ✓ ✓ Gain on disposal of equipment ✓ Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in inventory Decrease in prepaid insurance Decrease in accounts payable Increase in income taxes payable Net cash flows from operating activities Feedback 00 00000
View previous at Required information Assume a company prepares the statement of cash flows using the indirect method. The company purchases its Inventory on credit from suppliers. How should a decrease in accounts payable be reflected In the section that reconciles net income to cash flow from operating activitles? Multiple Choice It would be added if the section starts with net income and subtracted if it starts with a net loss It would be added in reconciling net income to cash flow from operafing activities It would be subtracted in reconciling net income to cash flow from operating activities A change in accounts payable does not affect the reconciliation of net income to cash flow from operating activities < Prev 15 of 15 Next Form 1040Sch...pdf 6 Form1040 Sch...pdf B1040 Sohedul...pdf Form8829 (1).pdf MacBook Air
Sales Cost of goods sold Depreciation Other operating expenses Income tax Loss on sale of equipment Gain on sale of investment Net earnings and comprehensive income As at December 31 Cash Accounts receivable Inventory Equipment Less: accumulated depreciation Investment Total Accounts payable Income tax payable Bonds payable Common shares Retained earnings Total $193,800 25,400 76,100 43,800 3,000 (2,300) 20X2 $ 69,300 89,600 187,700 556,300 (231, 200) 54,700 $ 726,400 $ $510,000 339,800 $170, 200 20X1 $ 55,200 102, 600 175,400 475,400 (229,100) 79,000 $ 658,500 62,000 10,000 45,700 307, 200 301,500 $ 726,400 $ 658,500 $ 104,100 7,000 307, 200 240, 200 Additional information: During the year, equipment with an original cost of $99,800 was sold for cash.
D. MATCHING In the following statement of cash flows, each letter represents a specific item which may appear on the statement, using the indirect method. Match the appropriate letter(s) with each transaction listed below. More than one letter may be used for each transaction. 1) 2) 3) 4) 5) 6) 7) 8) 9) Statement of Cash Flows Cash Flows from Operating Activities: Net Income Adjustments to Net Income: Add Deduct Cash Flows from Investing Activities Add Deduct Cash Flows from Financing Activities Add Deduct Significant Non-Cash Transactions Not on the Statement of Cash Flows (A) (B) (D) 30 000€ (H) Sold a short-term, available-for-sale investment at a gain. Temporarily borrowed money by signing a short-term, promissory trade notes payable. Treasury stock was purchased with cash. Declared cash dividends (but did not pay them yet). Purchased land by giving shares of common stock held in treasury. Amortized the premium on bonds payable. Paid off bonds payable before maturity and incurred a…

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