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

PARNELL COMPANY Income Statement For the Year Ended December 31, 2018 ($ in 000s)
Revenues and gains:
Sales	$	880
Gain on sale of buildings		10		$	890
Expenses and loss:
Cost of goods sold	$	340
Salaries		128
Insurance		48
Depreciation		131
Interest expense		58
Loss on sale of machinery		13			718
Income before tax					172
Income tax expense					86
Net income				$	86

PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s)
	Year
		2018			2017		Change
Cash	$	150		$	92		$	58
Accounts receivable		340			208			132
Inventory		313			441			(128	)
Prepaid insurance		58			104			(46	)
Accounts payable		226			109			117
Salaries payable		118			85			33
Deferred income tax liability		76			60			16
Bond discount		182			216			(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.