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:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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)
Transcribed Image Text: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:
Transcribed Image Text: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:
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