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

PARNELL COMPANY

Income Statement

For the Year Ended December $31,2024$

$($$ in thousands$)$

Revenues and gains:

Sales $ $730$

Gain on sale of building $10$ $ $740$

Expenses and loss:

Cost of goods sold $ $265$

Salaries $113$

Insurance $33$

Depreciation $116$

Interest expense $43$

Loss on sale of equipment $12582$

Income before tax $158$

Income tax expense $79$

Net income $ $79$

PARNELL COMPANY

Selected Accounts from Comparative Balance Sheets

December $31,2024$ and $2023$

$($$ in thousands$)$

Year Change

$20242023$

Cash $ $127$ $ $107$ $ $20$

Accounts receivable $31722394$

Inventory $328418(90)$

Prepaid insurance $6881(13)$

Accounts payable $20312479$

Salaries payable $11610016$

Deferred tax liability $745915$

Bond discount $176207(31)$

Required:

$1.$ Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the direct method.

Note: Enter your answers in thousands $($i$.$e$.,10,000$ should be entered as $10).$ Amounts to be deducted should be indicated with a minus sign.