Required information Problem 21-8 (Algo) Cash flows from operating activities (direct method and indirect metho- income tax liability and amortization of bond discount [LO21-3, 21-4] [The following information applies to the questions displayed below.] Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended December 31, 2021 Revenues and gains: Sales ($ in thousands) Gain on sale of building Expenses and loss: Cost of goods sold Salaries Insurance $ 850 10 $860 $325 125 45 Depreciation 128 Interest expense 55 Loss on sale of equipment 12 690 Income before tax 170 Income tax expense 85 Net income $ 85 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) Year 2021 2020 Change Cash $ 144 14 195 $ 49 Accounts receivable 334 211 123 Inventory 316 435 (119) Prepaid insurance 61 98 (37) Accounts payable 220 112 108 Salaries payable 112 88 24 Deferred tax liability 70 57 13 Bond discount 185 210 (25)