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

PARNELL COMPANYIncome StatementFor the Year Ended December 31, 2024($ in thousands)Revenues and gains:Sales$ 700Gain on sale of building10$ 710Expenses and loss:Cost of goods sold$ 250Salaries110Insurance30Depreciation113Interest expense40Loss on sale of equipment13556Income before tax154Income tax expense77Net income$ 77PARNELL COMPANYSelected Accounts from Comparative Balance SheetsDecember 31, 2024 and 2023($ in thousands)YearChange20242023Cash$ 124$ 110$ 14Accounts receivable31422688Inventory331415(84)Prepaid insurance6578(13)Accounts payable20012773Salaries payable12210319Deferred tax liability806218Bond discount183210(27)

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.

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