Portions of the financial statements for Parnell Company are provided below. 8860 PARNELL COMPANY Income Statement For the Year Ended December 31, 2018 ($ in 000) Revenues and gains: Sales $850 Gain on sale of buildings 10 Expenses and loss Cost of goods sold $325 Salaries 125 Insurance 45 Depreciation 128 Interest expense 55 Loss on sale of machinery 12 Income before tax Income tax expense Net income 690 170 85 5 85 PARNELL COMPANY Selected Acenta from Comparative Balance Sheeta December 31, 2018 and 2017 (5 in 000) Year 2018 2017 Cash $ 144 Accounts receivable 334 211 Inventory 316 435 Prepaid Insurance 61 98 Accounts payable 220 112 Salaries payable 88 Deferred income tax liability 70 57 Bond discount 185 210 Change $ 49 123 (119) 112 (37) 100 24 13 (25) 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 30 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 (.e., 5,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.) ok Cash Flows from Operating Activities: Cash received from customers Cash paid to suppliers Cash paid to employees Cash paid for insurance Cash paid for income taxes ances Net cash flows from operating activities s 0 Required 2 > Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the ind method. (Enter your answers in thousands (i.e., 5,000 should be entered as 5). Amounts to be deducted should be indic 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 $ 0