PARNELL COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues and gains: Sales Gain on sale of building Expenses and loss: Cost of goods sold Salaries $890 11 $901 $345 129 Insurance 53 Depreciation Interest expense Loss on sale of equipment 132 59 13 731 170 Income before tax Income tax expense 85 Net income $ 85 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) Year 2020 Change 2021 $ 152 Cash 91 61 Accounts receivable Inventory Prepaid insurance Accounts payable Salaries payable Deferred tax liability Bond discount 342 207 135 312 443 (131) (49) 120 36 57 106 228 108 120 78 84 61 218 17 181 (37) 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 (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: Adjustments for noncash effects: Changes in operating assets and liabilities:
PARNELL COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues and gains: Sales Gain on sale of building Expenses and loss: Cost of goods sold Salaries $890 11 $901 $345 129 Insurance 53 Depreciation Interest expense Loss on sale of equipment 132 59 13 731 170 Income before tax Income tax expense 85 Net income $ 85 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) Year 2020 Change 2021 $ 152 Cash 91 61 Accounts receivable Inventory Prepaid insurance Accounts payable Salaries payable Deferred tax liability Bond discount 342 207 135 312 443 (131) (49) 120 36 57 106 228 108 120 78 84 61 218 17 181 (37) 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 (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: Adjustments for noncash effects: Changes in operating assets and liabilities:
Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter4: Analysis Of Financial Statements
Section: Chapter Questions
Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...
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