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Portions of the financial statements for Parnell Company are provided below. $901 PARNELL COMPANY Income Statement For the Year Ended December 31, 2021 ($ in
Portions of the financial statements for Parnell Company are provided below. $901 PARNELL COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues and gains: Sales $890 Gain on sale of building 11 Expenses and loss: Cost of goods sold $345 Salaries 129 Insurance Depreciation Interest expense 59 Loss on sale of equipment Income before tax Income tax expense Net income 53 132 13 31 170 85 $ 85 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) Year 2021 2020 Cash $ 152 $ 91 Accounts receivable 207 Inventory 312 443 Prepaid insurance 57 106 Accounts payable 228 108 Salaries payable 120 84 Deferred tax liability 78 61 Bond discount 181 218 342 Change $ 61 135 (131) (49) 120 36 17 (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: Net cash flows from operating activities
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