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Following are selected balance sheet accounts of Del Conte Corp. at December 31, 2018 and 2017, and the increases or decreases in each account from 2017 to 2018. Also presented is selected income statement information for the year ended December 31, 2018, and additional information. 2018 2017 Increase (Decrease) $ 50,000 293,000 (194,000) $ $ 32,000 32,000 255,000 (175,000) $18,000 38,000 19,000 Selected Balance Sheet Accounts Assets Accounts receivable Property, plant, and equipment Accumulated depreciation Liabilities and Stockholders' Equity Bonds payable Dividends payable Common stock, $1 par Additional paid-in capital Retained earnings 73,000 12,000 38,000 13,000 120,000 62,000 8,200 27,000 6,200 99,000 11,000 3,800 11,000 6,800 21,000 Selected Income Statement Information for the Year Ended December 31, 2018 Sales revenue $ 171,000 Depreciation 49,000 Gain on sale of equipment 17,000 Net income 44,000 Additional information: a. Accounts receivable relate to sales of merchandise. b. During 2018, equipment costing $56,000 was sold for cash. c. During 2018, bonds payable with a face value of $36,000 were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium. Required: Items 1 through 5 represent activities that will be reported in Del Conte's statement of cash flows for the year ended December 31, 2018. The following two responses are required for each item: a. Determine the amount that should be reported in Del Conte's 2018 statement of cash flows. b. Select the category (i.e., O - Operating activity, I - Investing activity and F - Financing activity) in which the amount should be reported in the statement of cash flows. Amount Category 1. Cash collections from customers (direct method). 2. Payments for purchase of property, plant, and equipment 3. Proceeds from sale of equipment. 4. Cash dividends paid. 5. Redemption of bonds payable. 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 Change $ 58 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ($ in 2005) Year 2018 2017 Cash $ 150 $ 92 Accounts receivable 340 208 Inventory 313 441 Prepaid insurance 58 104 Accounts payable 226 Salaries payable 118 Deferred income tax liability 76 Bond discount 182 132 (128) (46) 117 109 85 33 216 16 (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 E method. Complete this question by entering your answers in the tabs below. Required i Required 2 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 direct 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 cash flows from operating activities 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: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities