Income tax expense Net income my won $ 80 Change PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ($ in eees) Year 2018 2017 Cash $ 126 $ 188 Accounts receivable 316 224 Inventory 417 Prepaid insurance 69 80 Accounts payable 202 125 Salaries payable Deferred income tax liability 6e Bond discount 180 28 329 (88) (11) 118 1e1 26 2es (28) 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 vour answers in the tabs below. Portions of the financial statements for Parnell Company are provided below. $ 720 11 $ 731 PARNELL COMPANY Income Statement For the Year Ended December 31, 2018 ($ in poes) 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 $ 260 112 32 115 $ 80 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets Required 1 Required 2 Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Comp method. (Enter your answers in thousands (i.e., 5,000 should be entered as 5). Amounts to be deducte with a minus sign.) 5.5 points Cash Flows from Operating Activities: Cash received from customers Cash paid to suppliers Cash paid to employees Cash paid for interest Cash paid for insurance Cash paid for income taxes 00000 639 (95) (95) (42) (21) (64) oooo Net cash flows from operating activities 322 Required 2 > Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Compan method. (Enter your answers in thousands (i.e., 5,000 should be entered as 5). Amounts to be deducted with a minus sign.) 5.5 points 80 115 10 Cash Flows from Operating Activities: Net income Adjustments for noncash effects. Depreciation expense Gain on sale of buildings Loss on sale of machinery Decrease in bond discount Changes in operating assets and liabilities: Increase in accounts receivable Decrease in inventory Decrease in prepaid insurance Increase in a nuts navale 28 sooo ooo (92)