90.2K

Verified Solution

Link Copied!

Required information [The following information applies to the questions displayed below) Portions of the financial statements for Parnell Company are provided below. $ 761 PARNELL COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues and gains Sales $ 750 Gain on sale of building 11 Expenses and lossi Cost of goods sold $ 275 Salaries 115 Insurance 35 Depreciation 118 Interest expense 45 Loss on sale of equipment 13 Incone before tax Income tax expense Net income 601 160 80 $ 80 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31. 2021 and 2020 ($ in thousands) Year 2021 2020 Cash $ 129 $ 105 Accounts receivable 319 221 Inventory 326 420 Prepaid insurance 71 83 Accounts payable 205 122 Salaries payable 112 98 Deferred tax liability 70 57 Bond discount 180 205 Change $ 24 98 (94) (12) 83 14 13 (25) M7 Prepaid insurance Accounts payablo Salaries payable Deferred tax liability Bond discount 71 205 112 70 180 B3 122 98 57 205 (12) 83 14 13 (25) 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 (.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: ces Changes in operating assets and liabilities Net cash flows from operating activities

Answer & Explanation Solved by verified expert

See Answer