Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended December 31, 2818 (s in 888s) Revenues and gains: Sales $888 Gain on sale of buildings 18 898 Expenses and loss Cost of goods sold Salaries Insurance Depreciation Interest expense Loss on sale of machinery $ 340 128 48 131 58 13 718 172 86 $ 86 Income before tax Income tax expense Net income PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2818 and 2817 s in 8e8s) Year Change 2818 $ 158$92 $ 58 2017 Cash Accounts receivable Inventory Prepaid insurance Accounts payable Salaries payable Deferred income tax liability Bond discount 348 313 58 226 118 76 182 288 441 184 189 85 68 216 132 (128) (46) 16 (34) 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