Portions of the financial statements for Parnell Company are provided below.

PARNELL COMPANY Income Statement For the Year Ended December 31, 2016 ($ in 000s)

Revenues and gains:
Sales	$710
Gain on sale of buildings	12		$	722
Expenses and loss:
Cost of goods sold	$255
Salaries	111
Insurance	31
Depreciation	114
Interest expense	41
Loss on sale of machinery	12			564
Income before tax				158
Income tax expense				79
Net income			$	79

PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2016 and 2015 ($ in 000s)
	Year
	2016	2015	Change
Cash	$125	$109	$16
Accounts receivable	315	225	90
Inventory	330	416	(86	)
Prepaid insurance	67	79	(12	)
Accounts payable	201	126	75
Salaries payable	120	102	18
Deferred income tax liability	78	61	17
Bond discount	185	209	(24	)

Required:

1.

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.) 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.)