PARNELL COMPANY Income Statement For the Year Ended December 31, 2018 ($ in 000s) Revenues and gains: $ 780 Sales Gain on sale of buildings $ 791 11 Expenses and loss: Cost of goods sold Salaries $290 118 38 Insurance Depreciation Interest expense 121 48 Loss on sale of machinery 12 627 Income before tax 164 Income tax expense 82 $82 Net income PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s) Year Change 2018 2017 $ 102 Cash 132 30 Accounts receivable 322 218 104 423 Inventory Prepaid insurance Accounts payable Salaries payable Deferred income tax liability 323 (100) (18) 68 86 208 119 89 106 95 11 64 54 10 Bond discount 186 202 (16) 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. 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: Cash paid for income taxes Cash paid for insurance Cash paid to employees Cash paid to suppliers Cash received from customers Net cash flows from operating activities 0 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 Net income Adjustments for noncash effects: Changes in operating assets and liabilities: $ 0 Net cash flows from operating activities