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Required information Skip to question [The following information applies to the questions displayed below.] Portions of the financial statements for Parnell Company are provided below.

Required information

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[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, 2024
($ in thousands)
Revenues and gains:
Sales $ 800
Gain on sale of building 11 $ 811
Expenses and loss:
Cost of goods sold $ 300
Salaries 120
Insurance 40
Depreciation 123
Interest expense 50
Loss on sale of equipment 12 645
Income before tax 166
Income tax expense 78
Net income $ 88
PARNELL COMPANY
Selected Accounts from Comparative
Balance Sheets
December 31, 2024 and 2023
($ in thousands)
Year Change
2024 2023
Cash $ 134 $ 100 $ 34
Accounts receivable 324 216 108
Inventory 321 425 (104)
Prepaid insurance 66 88 (22)
Accounts payable 210 117 93
Salaries payable 102 93 9
Deferred tax liability 60 52 8
Bond discount 190 200 (10)

Required:

1. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the direct method.

Note: 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.

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