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2. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the indirect method.

Required information [The following information applies to the questions displayed below.] Portions of the financial statements for Pamell Company are provided below. $ 782 PARNELL COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues and gains: Sales $778 Gain on sale of building 12 Expenses and loss: Cost of goods sold $ 285 Salaries 117 Insurance 37 Depreciation 120 Interest expense 47 Loss on sale of equipment 12 Income before tax Income tax expense Net income 618 164 $ 82 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) Year 2e21 2020 Cash $ 131 $ 183 Accounts receivable 321 219 Inventory 422 Prepaid insurance 85 Accounts payable 207 120 Salaries payable 198 96 Deferred tax liability 66 55 Bond discount 184 283 Change $ 28 182 (98) (16) 87 12 11 (19) Required: 1. 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., 10.000 should be entered as 10). Amounts to be deducted should be indicated with a minus slgn.)

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