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

Required:
	a) 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.) b) 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.)

PARNELL COMPANY Income Statement For the Year Ended December 31, 2016 in 000s) Revenues and gains: $720 Sales Gain on sale of buildings 11 731 Expenses and loss: Cost of goods sold $260 Salaries 112 Insurance 32 Depreciation 115 Interest expense 42 Loss on sale of machinery 10 571 Income before tax 160 Income tax expense 80 Net income 80 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2016 and 2015 in 000s) Year Change 2016 2015 Cash $126 $108 $18 Accounts receivable 316 224 92 Inventory 329 417 (88) Prepaid insurance 69 80 (11) Accounts payable 202 125 Salaries payable 118 101 17 Deferred income tax liability 76 60 16 Bond discount 180 208 (28)