Portions of the financial statements for Parnell Company are provided below. PAR
ID: 2336264 • Letter: P
Question
Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended December 31, 2818 ($ in 88es) Revenues and gains: Sales Gain on sale of buildings $798 $888 Expenses and loss Cost of goods sold Salaries Insurance Depreciation Interest expense Loss on sale of machinery $ 295 119 39 122 49 12 Income before tax 164 82 $ 82 Income tax expense Net income PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2818 and 2817 sin 888s) Year 2818 2817 Change Cash Accounts receivable Inventory Prepaid insurance Accounts payable Salaries payable Deferred income tax liability Bond discount $ 133 181 32 186 323 322 67 289 184 62 188 217 424 87 118 94 53 201 (182) (28) 91 18 (13) Requlred 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 indirectExplanation / Answer
1.
1.Calculation of cash received from customers:
2.Calculation of cash paid to suppliers:
3.Calculation of cash paid to employees:
4.Calculation of cash paid to insurance:
5.Calculation of cash paid towards interest:
6.Calculation of Cash paid for Income Tax:
2.
Statement of Cash Flows - Parnell Company (Direct method) Particulars Details Amount Cash Flow from Operating Activities: Cash received from customers $684.00 Cash paid to suppliers -$102.00 Cash paid to employees -$109.00 Cash paid for Insurance -$19.00 Cash paid for Interest -$36.00 Cash paid for Income Tax -$73.00 Net Cash flows from Operating Activites $345.00