ncome Statement
For the Year Ended December 31, 2024
($ in thousands)
Revenues and gains:
Sales	$ 810
Gain on sale of building	12	$ 822
Expenses and loss:
Cost of goods sold	$ 305
Salaries	121
Insurance	41
Depreciation	124
Interest expense	51
Loss on sale of equipment	12	654
Income before tax		168
Income tax expense		84
Net income		$ 84

2024	2023
PARNELL COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2024 and 2023
($ in thousands)
	Year	Change
Cash	$ 136	$ 99	$ 37
Accounts receivable	326	215	111
Inventory	320	427	(107)
Prepaid insurance	65	90	(25)
Accounts payable	212	116	96
Salaries payable	104	92	12
Deferred tax liability	62	53	9
Bond discount	189	202	(13)

Required:

1. 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.