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Portions of the financial statements for Parnell Company are provided below. $ 880 10 $ 890 PARNELL COMPANY Income Statement For the Year Ended December 31, 2018 ($ in 2005) 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 $ 340 128 131 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ($ in 200s) Year 2018 2017 Cash $ 150 $ 92 Accounts receivable 340 208 Inventory 313 441 Prepaid insurance 58 104 Accounts payable Salaries payable 85 Deferred income tax liability Bond discount 216 Change $ 58 132 (128) (46) 109 117 33 60 182 (34) Required: 1. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the direct method. 2. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the indirect method. Complete this question by entering your answers in the tabs below. Required 1 Required 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.) Cash Flows from Operating Activities: Net income Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities

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