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	$	770
Gain on sale of buildings		12		$	782
Expenses and loss:
Cost of goods sold	$	285
Salaries		117
Insurance		37
Depreciation		120
Interest expense		47
Loss on sale of machinery		12			618
Income before tax					164
Income tax expense					82
Net income				$	82

PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s)
	Year
		2018			2017		Change
Cash	$	131		$	103		$	28
Accounts receivable		321			219			102
Inventory		324			422			(98	)
Prepaid insurance		69			85			(16	)
Accounts payable		207			120			87
Salaries payable		108			96			12
Deferred income tax liability		66			55			11
Bond discount		184			203			(19	)

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.