Portions of the financial statements for Parnell Company areprovided below. PARNELLCOMPANY Income Statement For the Year Ended
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Question:
Portions of the financial statements for Parnell Company areprovided below. |
PARNELLCOMPANY Income Statement For the Year Ended December 31, 2016 ($ in 000s) |
Revenues andgains: | |||||
Sales | $740 | ||||
Gain on sale of buildings | 12 | $ | 752 | ||
Expenses andloss: | |||||
Cost of goods sold | $270 | ||||
Salaries | 114 | ||||
Insurance | 34 | ||||
Depreciation | 117 | ||||
Interest expense | 44 | ||||
Loss on sale of machinery | 11 | 590 | |||
Incomebefore tax | 162 | ||||
Income tax expense | 81 | ||||
Net income | $ | 81 | |||
PARNELLCOMPANY Selected Accounts fromComparative Balance Sheets December 31, 2016 and2015 ($ in 000s) | ||||
Year | ||||
2016 | 2015 | Change | ||
Cash | $128 | $106 | $22 | |
Accountsreceivable | 318 | 222 | 96 | |
Inventory | 327 | 419 | (92 | ) |
Prepaidinsurance | 67 | 82 | (15 | ) |
Accountspayable | 204 | 123 | 81 | |
Salariespayable | 114 | 99 | 15 | |
Deferred income taxliability | 72 | 58 | 14 | |
Bond discount | 178 | 206 | (28 | ) |
Required: | |||||
1. | Prepare the cash flows from operating activities section of thestatement of cash flows for Parnell Company using the directmethod. (Enter your answers in thousands (i.e., 5,000should be entered as 5). Amounts to bededucted should be indicated with a minus sign.)
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Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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