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.

Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended December 31, 2818 ($ in 888s) Revenues and gains: 768 Sales Gain on sale of buildings 18 $778 Expenses and loss Cost of goods sold Salaries Insurance Depreciation Interest expense Loss on sale of machinery $ 280 116 36 119 46 13 618 168 8e $ 88 Income before tax Income tax expense Net income PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2818 and 2817 (s in ee8s) Year 2817 $138$ 184 228 421 84 121 97 56 284 Change $ 26 2818 Cash Accounts receivable Inventory Prepaid insurance Accounts payable Salaries payable Deferred income tax liability Bond discount 328 325 78 286 118 68 182 188 (96) (14) 85 13 12 (22) Complete this question by entering your answers in the tabs below. Required 1Required 2 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 660 Cash received from customers Cash paid to suppliers Cash paid to employees Cash paid for insurance Cash paid for interest Cash paid for income taxes (124) Net cash flows from operating activities 536 Complete this question by entering your answers in the tabs below. Required 1Required 2 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.) Cash Flows from Operating Activities: Adjustments for noncash effects: Changes in operating assets and liabilities