Portions the the financial statements for Parnell agency are detailed below.
PARNELL COMPANYIncome StatementFor the Year ended December 31, 2018($ in 000s) | ||||||
Revenues and also gains: | ||||||
Sales | $ | 790 | ||||
Gain on sale of buildings | 10 | $ | 800 | |||
Expenses and loss: | ||||||
Cost of items sold | $ | 295 | ||||
Salaries | 119 | |||||
Insurance | 39 | |||||
Depreciation | 122 | |||||
Interest expense | 49 | |||||
Loss on revenue of machinery | 12 | 636 | ||||
Income prior to tax | 164 | |||||
Income taxation expense | 82 | |||||
Net income | $ | 82 | ||||
PARNELL COMPANYSelected account from comparative Balance SheetsDecember 31, 2018 and 2017($ in 000s) | |||||||||
Year | |||||||||
2018 | 2017 | Change | |||||||
Cash | $ | 133 | $ | 101 | $ | 32 | |||
Accounts receivable | 323 | 217 | 106 | ||||||
Inventory | 322 | 424 | (102 | ) | |||||
Prepaid insurance | 67 | 87 | (20 | ) | |||||
Accounts payable | 209 | 118 | 91 | ||||||
Salaries payable | 104 | 94 | 10 | ||||||
Deferred income tax liability | 62 | 53 | 9 | ||||||
Bond discount | 188 | 201 | (13 | ) | |||||
Required:
1.Prepare the cash flows from operating activities section that the declare of cash flows for Parnell agency using the straight method.2.Prepare the cash operation from operating tasks section the the statement of cash flows for Parnell firm using the indirect method.