Required information [The following information applies to the questions displayed below.] Portions of the financial statements for Parnell Company are provided below. $ 871 PARNELL COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues and gains: Sales $860 Gain on sale of building 11 Expenses and loss: Cost of goods sold $ 330 Salaries 126 Insurance 46 Depreciation 129 Interest expense 56 Loss on sale of equipment 12 Income before tax Income tax expense Net income 699 172 86 $ 86 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) Year 2021 2020 Cash $ 146 $ 94 Accounts receivable 336 210 Inventory 315 437 Prepaid insurance 60 100 Accounts payable 111 Salaries payable 114 87 Deferred tax liability 72 58 Bond discount 184 212 $ Change $ 52 126 (122) (40) 111 27 14 (28) 222 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., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) Cash Flows from Operating Activities Net cash flows from operating activities Required information [The following information applies to the questions displayed below.) Portions of the financial statements for Parnell Company are provided below. $ 871 PARNELL COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues and gains: Sales $ 860 Gain on sale of building 11 Expenses and loss: Cost of goods sold $ 330 Salaries 126 Insurance 46 Depreciation 129 Interest expense 56 Loss on sale of equipment 12 Income before tax Income tax expense Net income 699 172 86 $ 86 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) Year 2021 2020 Cash $ 146 $ 94 Accounts receivable 336 210 Inventory 315 437 Prepaid insurance 60 100 Accounts payable 222 111 Salaries payable 114 87 Deferred tax liability 72 58 Bond discount 184 212 Change 52 126 (122) (40) 111 27 14 (28) 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 (ie., 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
