Required: 1. Prepare the cash flows from operating activities section of the statement of cash flows (Enter your answers in thousands (i.e., 10,000 should be entered as 10). Amounts to b

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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PARNELL COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2021 and 2020
($ in thousands)
Cash
Accounts receivable
Inventory
Prepaid insurance
Accounts payable
Salaries payable
Deferred tax liability.
Bond discount
2021
$ 138
328
319
64
Cash Flows from Operating Activities:
214
106
64
188
Year
$
2020
98
214
429
92
115
91
54
204
Change
40
114
(110)
(28)
99
15
10
(16)
to
$
Required:
1. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the direct 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.)
Transcribed Image Text:PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) Cash Accounts receivable Inventory Prepaid insurance Accounts payable Salaries payable Deferred tax liability. Bond discount 2021 $ 138 328 319 64 Cash Flows from Operating Activities: 214 106 64 188 Year $ 2020 98 214 429 92 115 91 54 204 Change 40 114 (110) (28) 99 15 10 (16) to $ Required: 1. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the direct 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.)
Required information
[The following information applies to the questions displayed below.]
Portions of the financial statements for Parnell Company are provided below.
For the
Revenues and gains:
Sales
Cost of goods sold
Gain on sale of building
Expenses and loss:
PARNELL COMPANY
Income Statement
Income tax expense
Year Ended December 31, 2021
($ in thousands)
Salaries
Insurance
Depreciation
Interest expense
Loss on sale of equipment
Income before tax
Net income
$ 820
10
$310
122
42
125
52
13
$ 830
664
166
83
$ 83
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. For the Revenues and gains: Sales Cost of goods sold Gain on sale of building Expenses and loss: PARNELL COMPANY Income Statement Income tax expense Year Ended December 31, 2021 ($ in thousands) Salaries Insurance Depreciation Interest expense Loss on sale of equipment Income before tax Net income $ 820 10 $310 122 42 125 52 13 $ 830 664 166 83 $ 83
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