21-8 (Algo) Cash flows from operating activities (direct method and indirect method)- deferred income tax liability and amortization of bond discount (LO21-3, 21-4] [The following information applies to the questions displayed below] Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended December 31, 2021 Revenues and gains: Sales ($ in thousands) Gain on sale of building Expenses and losses: Cost of goods sold Salaries expense Insurance expense Depreciation expense $790 10 $800 $295 119 39 122 Interest expense Loss on sale of equipment Income before tax Income tax expense Net income 49 12 636 1641 82 $ 82 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets ANN Jemen VI COM FLOWS - Dire Saved PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) Year 2021 2020 Change Cash $ 133 $ 101 $ 32 Accounts receivable 323 217 106 Inventory 322 424 (102) Prepaid insurance 67 87 (28) Accounts payable 209 118 91 Salaries payable 104 94 10 Deferred tax liability 62 53 9 Bond discount 188 201 (13) Help Save & Exit Submit Problem 21-8 (Algo) Part 2 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.) Required information 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: to courch Changes in operating assets and liabilities: < Prev 9 8m of 5 Next >