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Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended December 31, 2018 ($ in 000s) Revenues and gains Sales $730 10 $740 Gain on sale of buildings Expenses and loss Cost of goods sold $265 Salaries 113 33 Insurance Depreciation 116 43 Interest expense 12 582 Loss on sale of machinery Income before tax 158 79 Income tax expense 79 Net income PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s) Year 2018 2017 Change $ 20 Cash $127 107 Accounts receivable 317 223 94 328 418 (90) (13) Inventory Prepaid insurance Accounts payable Salaries payable Deferred income tax liability 68 81 203 124 79 116 100 16 74 59 15 Bond discount 176 207 (31) 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: Cash received from customers Cash paid to suppliers Cash paid to employees Cash paid for insurance Cash paid for interest Cash paid for income taxes Net cash flows from operating activities 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 siqn.) Cash Flows from Operating Activities: INet income Adjustments for noncash effects: Depreciation expense Gain on sale of buildings Loss on sale of machinery Changes in operating assets and liabilities: Increase in accounts receivable Decrease in inventory Increase in accounts payable Increase in salaries payable Decrease in prepaid insurance Decrease in bond discount Increase in deferred income tax liability Net cash flows from operating activities