Question

In: Accounting

Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For...

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

PARNELL COMPANY
Income Statement
For the Year Ended December 31, 2018
($ in 000s)
Revenues and gains:
Sales $ 900
Gain on sale of buildings 12 $ 912
Expenses and loss:
Cost of goods sold $ 350
Salaries 130
Insurance 54
Depreciation 133
Interest expense 60
Loss on sale of machinery 11 738
Income before tax 174
Income tax expense 87
Net income $ 87
PARNELL COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2018 and 2017
($ in 000s)
Year
2018 2017 Change
Cash $ 154 $ 90 $ 64
Accounts receivable 344 206 138
Inventory 311 445 (134 )
Prepaid insurance 64 108 (44 )
Accounts payable 230 107 123
Salaries payable 122 83 39
Deferred income tax liability 80 62 18
Bond discount 180 220 (40 )


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.

Solutions

Expert Solution



Related Solutions

Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For...
Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended December 31, 2018 ($ in 000s) Revenues and gains: Sales $ 740 Gain on sale of buildings 12 $ 752 Expenses and loss: Cost of goods sold $ 270 Salaries 114 Insurance 34 Depreciation 117 Interest expense 44 Loss on sale of machinery 11 590 Income before tax 162 Income tax expense 81 Net income $ 81 PARNELL COMPANY Selected Accounts...
Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For...
Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended December 31, 2018 ($ in 000s) Revenues and gains: Sales $ 700 Gain on sale of buildings 10 $ 710 Expenses and loss: Cost of goods sold $ 250 Salaries 110 Insurance 30 Depreciation 113 Interest expense 40 Loss on sale of machinery 13 556 Income before tax 154 Income tax expense 77 Net income $ 77 PARNELL COMPANY Selected Accounts...
Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For...
Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended December 31, 2018 ($ in 000s) Revenues and gains: Sales $ 780 Gain on sale of buildings 11 $ 791 Expenses and loss: Cost of goods sold $ 290 Salaries 118 Insurance 38 Depreciation 121 Interest expense 48 Loss on sale of machinery 12 627 Income before tax 164 Income tax expense 82 Net income $ 82 PARNELL COMPANY Selected Accounts...
Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For...
Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended December 31, 2018 ($ in 000s) Revenues and gains: Sales $ 880 Gain on sale of buildings 10 $ 890 Expenses and loss: Cost of goods sold $ 340 Salaries 128 Insurance 48 Depreciation 131 Interest expense 58 Loss on sale of machinery 13 718 Income before tax 172 Income tax expense 86 Net income $ 86 PARNELL COMPANY Selected Accounts...
Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For...
Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended December 31, 2018 ($ in 000s) Revenues and gains: Sales $ 900 Gain on sale of buildings 12 $ 912 Expenses and loss: Cost of goods sold $ 350 Salaries 130 Insurance 54 Depreciation 133 Interest expense 60 Loss on sale of machinery 11 738 Income before tax 174 Income tax expense 87 Net income $ 87 PARNELL COMPANY Selected Accounts...
Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For...
Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended December 31, 2016 ($ in 000s)   Revenues and gains:        Sales $720        Gain on sale of buildings 11 $ 731   Expenses and loss:        Cost of goods sold $260        Salaries 112        Insurance 32        Depreciation 115        Interest expense 42        Loss on sale of machinery 10 571   Income before tax 160        Income tax expense 80   Net...
Portions of the financial statements for Parnell Company are provided below.
  Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues and gains:             Sales $ 770         Gain on sale of building   12   $ 782   Expenses and loss:             Cost of goods sold $ 285         Salaries   117         Insurance...
Portions of the financial statements for Parnell Company are provided below.
Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues and gains:             Sales $ 740         Gain on sale of building   12   $ 752   Expenses and loss:             Cost of goods sold $ 270         Salaries   114         Insurance  ...
Portions of the financial statements for Hawkeye Company are provided below. HAWKEYE COMPANY Income Statement For...
Portions of the financial statements for Hawkeye Company are provided below. HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2018 Sales $ 810 Cost of goods sold 305 Gross margin 505 Operating expenses: Salaries $ 223 Depreciation 181 Loss on sale of land 10 Total operating expenses 414 Operating income 91 Other income (expense): Gain on sale of cash equivalents 4 Interest expense (31 ) Income before tax 64 Income tax expense 32 Net income $ 32 HAWKEYE...
Portions of the financial statements for Myriad Products are provided below. MYRIAD PRODUCTS COMPANY Income Statement...
Portions of the financial statements for Myriad Products are provided below. MYRIAD PRODUCTS COMPANY Income Statement For the Year Ended December 31, 2018 ($ in millions) Sales $ 840 Cost of goods sold 294 Gross margin 546 Salaries expense $ 135 Depreciation expense 92 Patent amortization expense 5 Interest expense 32 Loss on sale of land 4 268 Income before taxes 278 Income tax expense 139 Net Income $ 139 MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT