Please do not give solution in image format thanku Portions of the financial statements for Parnell Company are provided below.PARNELL COMPANYIncome StatementFor the Year Ended December 31, 2016($ in 000s)Revenues and gains:SalesGain on sale of buildingsExpenses and loss:Cost of goods soldSalariesInsuranceDepreciationInterest expenseLoss on sale of machineryIncome before taxIncome tax expenseNet incomeCashAccounts receivableInventoryPrepaid insuranceAccounts payableSalaries payableDecember 31, 2016 and 2015($ in 000s)Year2016$13632632065212104PARNELL COMPANYSelected Accounts from Comparative Balance Sheets2015$810$99215427901169212 $822$3051214112445112Change$37111(107)(25)961265416884$ 84 Salaries payableDeferred income tax liabilityBond discount10462189Cash Flows from Operating Activities:Required:1. Prepare the cash flows from operating activities section of the statement of cash flows for ParnellCompany using the direct method. (Enter your answers in thousands (i.e., 5,000 should be enteredas 5). Amounts to be deducted should be indicated with a minus sign.)Net cash flows from operating activities9253202Cash Flows from Operating Activities:Adjustments for noncash effects:$2. Prepare the cash flows from operating activities section of the statement of cash flows for ParnellCompany using the indirect method. (Enter your answers in thousands (i.e., 5,000 should beentered as 5). Amounts to be deducted should be indicated with a minus sign.)129(13)Changes in operating assets and liabilities:Net cash flows from operating activities0$0

Cash flow statement is the financial statement that records all the cash inflow and cash outflow…

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 Gain on sale of buildings Expenses and loss: Cost of goods sold Salaries Insurance Depreciation Interest expense Loss on sale of machinery Income before tax Income tax expense Net income Cash Accounts receivable Inventory Prepaid insurance Accounts payable Salaries payable 2016 $136 326 320 65 212 104 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2016 and 2015 ($ in 000s) Year 2015 $99 215 $810 427 90 116 92 12 $822 $305 121 41 124 51 12 654 Change $37 111 (107) (25) 96 12 168 84 $ 84

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 Gain on sale of buildings Expenses and loss: Cost of goods sold Salaries Insurance Depreciation Interest expense Loss on sale of machinery Income before tax Income tax expense Net income Cash Accounts receivable Inventory Prepaid insurance Accounts payable Salaries payable 2016 $136 326 320 65 212 104 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2016 and 2015 ($ in 000s) Year 2015 $99 215 $810 427 90 116 92 12 $822 $305 121 41 124 51 12 654 Change $37 111 (107) (25) 96 12 168 84 $ 84

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.8AMCP

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