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 $ 820 Gain on sale of buildings 10 $ 830 Expenses and loss: Cost of goods sold $ 310 Salaries 122 Insurance 42 Depreciation 125 Interest expense 52 Loss on sale of machinery 13 664 Income before tax 166 Income tax expense 83 Net income $ 83 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s) Year 2018 2017 Change Cash $ 138 $ 98 $ 40 Accounts receivable 328 214 114 Inventory 319 429 (110 ) Prepaid insurance 64 92 (28 ) Accounts payable 214 115 99 Salaries payable 106 91 15 Deferred income tax liability 64 54 10 Bond discount 188 204 (16 ) 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.