Portions of the financial statements for Parnell Company are provided below. Req
ID: 2522050 • Letter: P
Question
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.
(This is what I have so far)
2. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the indirect method.
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
Explanation / Answer
Solution 1:
Solution 2:
Statement of Cash Flows - Parnell Company (Direct method) Particulars Details Amount Cash Flow from Operating Activities: Cash received from customers $762.00 Cash paid to suppliers -$93.00 Cash paid to employees (130+83-122) -$91.00 Cash paid for Insurance (54-108+64) -$10.00 Cash paid for Interest (60-220+180) -$20.00 Cash paid for Income Tax (87+62-80) -$69.00 Net Cash flows from Operating Activites $479.00