Required information [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 (5 in thousands) Gain on sale of building Expenses and loss: Cost of goods sold Salaries Insurance Depreciation Interest expense Loss on sale of equipment Income before tax Income tax expense Net income $800 10 $890 $340 128 48 131 58 13 718 172 86 $ 86 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 (5 in thousands) Year Cash 2021 $150 2020 Change $ 92 $ 58 Accounts receivable 340 208 132 Inventory 313 441 (128) Prepaid insurance 58 104 (46) Accounts payable 226 109 117 Salaries payable 116 85 33 Deferred tax liability 76 60 36 Bond discount 182 216 (34) 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.) Inventory 313 441 (128) Prepaid insurance 58 104 (46) Accounts payable 226 109 117 Salaries payable 118 85 33 Deferred tax liability Bond discount 76 182 60 16 216 (34) 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: Adjustments for noncash effects Changes in operating assets and liabilities: Net cash flows from operating activities