Portions of the financial statements for Parnell Company are provided below.
PARNELL COMPANY
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Business, 14.12.2021 01:40, CristianPaz
Portions of the financial statements for Parnell Company are provided below.
PARNELL COMPANY
Income Statement
For the Year Ended December 31, 2016
($ in 000s)
Revenues and gains:
Sales$740
Gain on sale of buildings12 $752
Expenses and loss:
Cost of goods sold$270
Salaries114
Insurance34
Depreciation117
Interest expense44
Loss on sale of machinery11 590
Income before tax 162
Income tax expense 81
Net income $81
PARNELL COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2016 and 2015
($ in 000s)
Year
20162015Change
Cash$128$106$22
Accounts receivable31822296
Inventory327419(92)
Prepaid insurance6782(15)
Accounts payable20412381
Salaries payable1149915
Deferred income tax liability725814
Bond discount178206(28)
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., 5,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.)
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., 5,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.)
Answers: 2
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