Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended December 31, 2018 ($ in 000s) Revenues and gains: Sales $ 770 Gain on sale of buildings 12 $ 782 Expenses and loss: Cost of goods sold $ 285 Salaries 117 Insurance 37 Depreciation 120 Interest expense 47 Loss on sale of machinery 12 618 Income before tax 164 Income tax expense 82 Net income $ 82 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s) Year 2018 2017 Change Cash $ 131 $ 103 $ 28 Accounts receivable 321 219 102 Inventory 324 422 (98 ) Prepaid insurance 69 85 (16 ) Accounts payable 207 120 87 Salaries payable 108 96 12 Deferred income tax liability 66 55 11 Bond discount 184 203 (19 ) Required: 1. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the direct method. 2. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the indirect method.