( Portions of the financial statements for Parnell Company are provided below PARNELL COMPANY Income Statement For the Year Ended December 31, 2018 (s in 000s) Revenues and gains: $700 Sales Gain on sale of buildings 10 $710 Expenses and loss: $250 110 30 113 Cost of goods sold Salaries Insurance Depreciation Interest expense Loss on sale of machinery 13 556 154 Income before tax Income tax expense $ 77 Net income PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 in 000s) Year 2017 s 124$110 2018 Change 14 Cash Accounts receivable Inventory Prepaid insurance Accounts payable Salaries payable Deferred income tax liability Bond discount 314 331 65 200 122 80 183 226 (84) (13) 73 19 415 78 127 103 62 210 (27) 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