P21-8 Cash flows from operating activities (direct method and indirect method)---deferred income tax liability and amortization of bond discount LO21-3, LO214 Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues and gains: $800 Sales Gain on sale of building 11 $811 Expenses and loss: Cost of goods sold 300 120 Salaries Insurance Depreciation Interest expense Loss on sale of equipment 12 Income before tax Income tax expense Income tax expense Net income $ 88 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets Page 1282 December 31, 2021 and 2020 ($ in thousands) Year 2021 2020 Change Cash $134 $100 $ 34 Accounts receivable 324 216 108 Inventory (104) Prepaid insurance Accounts payable Salarits payable Deferred tax liability Bond discount 190 Required: 1. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the direct method. Year 2021 2020 Change Cash $134 $100 $ 34 Accounts receivable 324 108 216 425 Inventory Prepaid insurance Accounts payable Salaries payable Deferred tax liability Bond discount 190 200 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