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 ($ in thousands) Gain on sale of building $880 10 $890 Expenses and loss: Cost of goods sold $340 Salaries Insurance 128 48 Depreciation 131 Interest expense 58 Loss on sale of equipment 13 718 Income before tax 172 Income tax expense 86 Net income $ 86 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 Cash Accounts receivable Inventory Prepaid insurance Accounts payable Salaries payable Deferred tax liability Bond discount ($ in thousands). Year 2021 $ 150 2020 $ 92 340 208 Change $ 58 132 313 441 (128) 58 104 (46) 226 109 117 118 85 33 76 60 16 182 216 (34) Required: 1. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the direct 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.) Net incone Cash $ 85 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 Accounts receivable Inventory Prepaid insurance Accounts payable Salaries payable Deferred tax liability Bond discount ($ in thousands) Year 2021 2020 Change $ 150 $ 92 $ 58 340 208 132 313 441 (128) 58 104 (46) 226 109 117 118 85 33 76 60 16 182 216 (34) Required: 1. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the direct 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 cash flows from operating activities S 0 4