Portions of the financial statements for Parnell Company are provided below.
Required:
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.
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 $700 Gain on sale of building 10 $710 Expenses and loss: Cost of goods sold $250 Salaries 110 Insurance 30 Depreciation 113 Interest expense 40 Loss on sale of equipment 13 556 Income before tax 154 Income tax expense 77 Net income $ 77
PARNELL COMPANY
Selected Accounts from Comparative Balance Sheets December 31, 2024 and 2023 ($ in thousands) Year 2024 2023 Change Cash $ 124 $ 110 $ 14 Accounts receivable 314 226 88 Inventory 331 415 84) Prepaid insurance 65 78 13 Accounts payable 200 127 73 Salaries payable 122 103 19 Deferred tax liability 80 62 18 Bond discount 183 210 (27)
Required: 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 income Adjustments for noncash effects: Depreciation expense Gain on sale of building Loss on sale of equipment
Changes in operating assets and liabilities: Increase in accounts receivable Decrease in inventory Increase in accounts payable Increase in salaries payable Decrease in prepaid insurance
Net cash flows from operating activities
$
0
