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 Gain on sale of building Expenses and loss: Cost of goods sold 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 Cash Flows from Operating Activities: Cash received from customers Cash paid to suppliers Cash paid to employees Cash paid for insurance Cash paid for interest Cash paid for income taxes PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2024 and 2023 ($ in thousands) Net cash flows from operating activities $ 700 10 $ $ 250 110 30 0 113 40 13 Year $710 2024 $ 124 314 331 65 200 122 80 183 556 154 77 $77 2023 $ 110 226 415 78 127 103 62 210 Required: 1. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the direct 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. Change $14 88 (84) (13) 73 3 19 18 (27)
Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended December 31, 2024 ($ in thousands) Revenues and gains: Sales Gain on sale of building Expenses and loss: Cost of goods sold 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 Cash Flows from Operating Activities: Cash received from customers Cash paid to suppliers Cash paid to employees Cash paid for insurance Cash paid for interest Cash paid for income taxes PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2024 and 2023 ($ in thousands) Net cash flows from operating activities $ 700 10 $ $ 250 110 30 0 113 40 13 Year $710 2024 $ 124 314 331 65 200 122 80 183 556 154 77 $77 2023 $ 110 226 415 78 127 103 62 210 Required: 1. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the direct 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. Change $14 88 (84) (13) 73 3 19 18 (27)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
EE
![Required information
[The following information applies to the questions displayed below.]
Portions of the financial statements for Parnell Company are provided below.
PARNELL COMPANY
Income Statement
For the Year Ended December 31, 2024
($ in thousands)
Revenues and gains:
Sales
Gain on sale of building
Expenses and loss:
Cost of goods sold
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
Cash Flows from Operating
Activities:
Cash received from customers
Cash paid to suppliers
Cash paid to employees
Cash paid for insurance
Cash paid for interest
Cash paid for income taxes
Net cash flows from operating
activities
$700
10
$
$ 250
110
PARNELL COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2024 and 2023
($ in thousands)
0
30
113
40
13
Year
2024
$ 124
314
331
65
200
122
80
183
$710
556
154
77
$77
2023
Required:
1. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the
direct 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.
$ 110
226
415
78
127
103
62
210
Change
$14
88
(84)
(13)
73
19
18
(27)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F923cccf8-63b8-4a1b-9817-94368fc0db10%2Fab3e50da-6df7-4687-9e97-ec602877d9d1%2Fjs2dmkw_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Portions of the financial statements for Parnell Company are provided below.
PARNELL COMPANY
Income Statement
For the Year Ended December 31, 2024
($ in thousands)
Revenues and gains:
Sales
Gain on sale of building
Expenses and loss:
Cost of goods sold
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
Cash Flows from Operating
Activities:
Cash received from customers
Cash paid to suppliers
Cash paid to employees
Cash paid for insurance
Cash paid for interest
Cash paid for income taxes
Net cash flows from operating
activities
$700
10
$
$ 250
110
PARNELL COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2024 and 2023
($ in thousands)
0
30
113
40
13
Year
2024
$ 124
314
331
65
200
122
80
183
$710
556
154
77
$77
2023
Required:
1. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the
direct 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.
$ 110
226
415
78
127
103
62
210
Change
$14
88
(84)
(13)
73
19
18
(27)
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