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: Sales Gain on sale of buildings $ 850 10 $ 860 Expenses and loss: 325 125 45 128 Cost of goods sold Salaries Insurance Depreciation Interest expense Loss on sale of machinery 12 930 170 85 85 690 Income before tax Income tax expense Net income PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ( in 000s) Year Change $ 49 2018 2017 95 211 435 Cash Accounts receivable Inventory Prepaid insurance Accounts payable Salaries payable Deferred income tax liability Bond discount 334 316 61 220 112 70 185 123 (119) (37) 108 2 4 13 (25) 112 57 210 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 Answer is not complete. Complete this question by entering your answers in the tabs below. 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 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 Required 2> Required 1 Required 1Required 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., 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: 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 Net cash flows from operating activities K Required 1 Required 2