9 Portions of the financial statements for Parnell Company are provided below. Part 1 of 2 $ 782 8 points PARNELL COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues and gains: Sales $ 770 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 Skipped eBook 618 164 82 Print $ 82 References PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) Year 2021 2020 Cash $ 131 $ 103 Accounts receivable 321 219 Inventory 324 422 Prepaid insurance 69 85 Accounts payable 207 120 Salaries payable 108 96 Deferred tax liability 66 55 Bond discount 184 203 Change $ 28 102 (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 sign.) Cash Flows from Operating Activities: Net cash flows from operating activities $ 0 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., 10,000 should be entered as 10). 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 $ 0