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Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended December 31, 2016 ($ in 000s)

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

PARNELL COMPANY Income Statement For the Year Ended December 31, 2016 ($ in 000s)
Revenues and gains:
Sales $760
Gain on sale of buildings 10 $ 770
Expenses and loss:
Cost of goods sold $280
Salaries 116
Insurance 36
Depreciation 119
Interest expense 46
Loss on sale of machinery 13 610
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
2016 2015 Change
Cash $130 $104 $26
Accounts receivable 320 220 100
Inventory 325 421 (96 )
Prepaid insurance 70 84 (14 )
Accounts payable 206 121 85
Salaries payable 110 97 13
Deferred income tax liability 68 56 12
Bond discount 182 204 (22 )

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.)

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