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 $31,2024$

$($$ in thousands$)$

Revenues and gains:

Sales $ $800$

Gain on sale of building $11$ $ $811$

Expenses and loss:

Cost of goods sold $ $300$

Salaries $120$

Insurance $40$

Depreciation $123$

Interest expense $50$

Loss on sale of equipment $12645$

Income before tax $166$

Income tax expense $78$

Net income $ $88$

PARNELL COMPANY

Selected Accounts from Comparative

Balance Sheets

December $31,2024$ and $2023$

$($$ in thousands$)$

Year Change

$20242023$

Cash $ $134$ $ $100$ $ $34$

Accounts receivable $324216108$

Inventory $321425(104)$

Prepaid insurance $6688(22)$

Accounts payable $21011793$

Salaries payable $102939$

Deferred tax liability $60528$

Bond discount $190200(10)$Required:

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.

Answer is not complete.