Portions of the financial statements for Parnell Company are provided below.

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

Transcribed Image Text:

Revenues and gains: Sales Gain on sale of building PARNELL COMPANY Income Statement For the Year Ended December 31, 2024 ($ in thousands) Expenses and loss: Cost of goods sold Salaries Insurance Depreciation Interest expense Loss on sale of equipment Income before tax Income tax expense Net income $800 11 300 120 40 123 50 12 $811 645 166 78 $88