Portions of the financial statements for Parnell Company are provided below PARNELL COMPANY Income Statement For the Year Ended December 31, 2018 ( in millions) Revenues and gains: Sales Gain on sale of buildings $ 850 10 $860 Expenses and losses: Cost of goods sold Salaries Insurance Depreciation Interest expense (for bond) Loss on sale of machinery 325 125 45 128 12 690 170 85 $ 85 Income before tax Income tax expense Net income PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) Year 2018 Change 2017 144$95 211 435 98 112 Cash Accounts receivable Inventory Prepaid insurance Accounts payable Salaries payable Deferred tax liability Bond discount 334 316 61 220 112 70 185 123 (119) (37) 108 24 13 (25) 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. Enter your answers in millions (i.e., 5,000,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.) 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 millions (i.e., 5,000,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.) Cash Flows from Operating Activities: Net cash flows from operating activities 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 millions (i.e., 5,000,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.) Cash Flows from Operating Activities: Adjustments for noncash effects: Changes in operating assets and liabilities Net cash flows from operating activities