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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
Skip to question
[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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