Portions of the financial statements for Parnell Company are provided below PARNELL COMPANY Income Statement For the Year Ended December 31, 2016 (S in 000s) Revenues and gains Sales Gain on sale of buildings $750 11 $761 Expenses and loss: Cost of goods sold Salaries Insurance Depreciation Interest expense Loss on sale of machinery $275 115 35 118 45 13 601 Income before tax 160 80 Income tax expense Net income $ 80 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2016 and 2015 (S in 000s) Year 2016 2015 Change Cash Accounts receivable Inventory Prepaid insurance Accounts payable Salaries payable Deferred income tax liability Bond discount $129 $105 319 221 420 83 205 122 98 57 180 205 $24 98 (94) (12) 83 14 13 (25) 71 112 70 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.) Cash Flows from Operating Activities