Required information (The following information applies to the questions displayed below.) Portions of the financial statements for Parnell Company are provided below. $ 731 PARNELL COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues and gains: Sales $ 720 Gain on sale of building 11 Expenses and loss: Cost of goods sold $ 260 Salaries 112 Insurance 32 Depreciation 115 Interest expense Loss on sale of equipment 10 Income before tax Income tax expense Net income 160 80 $ 80 Change $ 18 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) Year 2021 2020 Cash $ 126 $ 108 Accounts receivable 224 Inventory 329 417 Prepaid insurance 69 Accounts payable 202 Salaries payable 118 Deferred tax liability 60 Bond discount 180 208 316 92 80 125 101 (88) (11) 77 17 16 (28) 76 Required: 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., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) Cash Flows from Operating Activities: Net income Adjustments for noncash effects: Depreciation expense Gain on sale of building Loss on sale of equipment Changes in operating assets and liabilities: Increase in accounts receivable Decrease in prepaid insurance Decrease in inventory Increase in accounts payable Increase in salaries payable Increase in deferred tax liability Decrease in bond discount Net cash flows from operating activities