Portions of the financial statements for Parnell Company are provided below. Revenues and gains: Sales For...

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Portions of the financial statements for Parnell Company are provided below. Revenues and gains: Sales For the Year Ended December 31, 2021 ($ in thousands) Gain on sale of building Expenses and loss: Cost of goods sold Salaries Insurance Depreciation PARNELL COMPANY Income Statement Interest expense Loss on sale of equipment Income before tax Income tax expense Net income Cash Accounts receivable Inventory Prepaid insurance Accounts payable Salaries payable Deferred tax liability Bond discount Cash Flows from Operating Activities: Cash received from customers Cash paid to suppliers Cash paid to employees Cash paid for insurance Accounts payable Accounts payable Accounts receivable $760 10 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) Net cash flows from operating activities $280 116 36 $ 119 46 13 2021 $ 130 320 325 70 206 110 68 182 $770 610 160 80 $ 80 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.) Year 0 2020 $ 104 220 421 84 121 97 56 204 Change 26 100 (96) (14) 85 13 12 (22) Portions of the financial statements for Parnell Company are provided below. Revenues and gains: Sales For the Year Ended December 31, 2021 ($ in thousands) Gain on sale of building Expenses and loss: Cost of goods sold Salaries Insurance Depreciation PARNELL COMPANY Income Statement Interest expense Loss on sale of equipment Income before tax Income tax expense Net income Cash Accounts receivable Inventory Prepaid insurance Accounts payable Salaries payable Deferred tax liability Bond discount Cash Flows from Operating Activities: Cash received from customers Cash paid to suppliers Cash paid to employees Cash paid for insurance Accounts payable Accounts payable Accounts receivable $760 10 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) Net cash flows from operating activities $280 116 36 $ 119 46 13 2021 $ 130 320 325 70 206 110 68 182 $770 610 160 80 $ 80 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.) Year 0 2020 $ 104 220 421 84 121 97 56 204 Change 26 100 (96) (14) 85 13 12 (22)

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Cash Flow Statement is prepared to know the movement of cash between two points of time Cash flows a... View the full answer