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

Question

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

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., 5,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.)

2. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the indirect method. (Enter your answers in thousands (i.e., 5,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.)

PARNELL COMPANY
Income Statement
For the Year Ended December 31, 2016
($ in 000s)

Explanation / Answer

Solution:

1) Preparing the Cash Flows From Operating Activities section of the Statment of Cash Flows for Parnell Company Using the Direct Method:

2) Preparing the Cash Flows from Operating Activities Section of the Statement of Cash Flows for Parnell Company Using the Indirect Method:

Direct Method Cash Flows From Operating Activities: Cash Received From Customers ($710 - $90) $620 Cash Paid to Suppliers ($94) Cash Paid to Employees ($111 - $18) ($93) Cash paid for insurance ($31 - $12) ($19) Cash Paid for Interest ($41 - $24) ($17) Cash Paid for Income Taxes ($79 - $17) ($62) Net Cash Flows From Operating Activities $335

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---