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

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Question: Portions of the financial statements for Parnell Company are provided below. PARNELL COMPA…
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PARNELL
COMPANY
Income Statement
For the Year Ended December 31, 2016
($ in 000s)
  Revenues and
gains:
  
    Sales
$730
  
    Gain on sale of buildings
10 $ 740
  Expenses and
loss:
  
    Cost of goods sold
$265
  
    Salaries
113
  
    Insurance
33
  
    Depreciation
116
  
    Interest expense
43
  
    Loss on sale of machinery
12 582
  Income
before tax
158
  
    Income tax expense
79
  Net income $ 79
        PARNELL
COMPANY
       Selected Accounts from
Comparative Balance Sheets
       December 31, 2016 and
2015
       ($ in 000s)
  Year
  2016   2015   Change
  Cash $127
  
$107
  
$20
  Accounts
receivable
317
  
223
  
94
  Inventory 328
  
418
  
(90 )
  Prepaid
insurance
68
  
81
  
(13 )
  Accounts
payable
203
  
124
  
79
  Salaries
payable
116
  
100
  
16
  Deferred income tax
liability
74
  
59
  
15
  Bond discount 176
  
207
  
(31 )

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., 5,000
should be entered as 5). Amounts to be deducted
should be indicated with a minus sign.)

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., 5,000 should be entered as 5).
Amounts to be deducted should be indicated with a minus
sign.)

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