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

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.

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PARNELL COMPANY Income Statement For the Year Ended December 31, 2018 ($ in thousands) Revenues and gains: Sales Gain on sale of buildings $800 $811 Expenses and loss: 300 120 40 123 50 12 Cost of goods sold Salaries Insurance ion Interest expense Loss on sale of machinery 645 166 78 $ 88 Income before tax Income tax expense Net income PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ($ in thousands) Year Change 2018 $134 324 321 2017 $100 216 425 Cash Accounts receivable Inventory Prepaid insurance Accounts payable Salaries payable Deferred income tax liability Bond discount $ 34 108 (104) (22) 93 9 8 (10) 210 102 60 190 93 52 200