Required information Problem 21-8 (Algo) Cash flows from operating activities (direct method and Indirect method)-deferred Income tax liability and amortization of bond discount [LO21-3, 21-4] [The following information applies to the questions displayed below] Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Incone Statement For the Year Ended December 31, 2021 Revenues and gains Sales ($ in thousande) Gain on sale of building Expenses and losses: Cost of goods sold $710 12 $722 $255 Salaries expense 111 Insurance expense 31 Depreciation expense 114 Interest expense 41 Loss on sale of equipment 12 564 Income before tax 158 Income tax expense 79 Net income $ 79 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 (5 in thousands) Year 2021 2020 Change Cash $125 $109 $ 16 Accounts receivable 315 225 90 Inventory 330 426 (86) Prepaid insurance 67 79 (12) Accounts payable 201 126 25 Salaries payable 120 102 18 Deferred tax liability 28 61 17 Bond discount 185 209 (24) Problem 21-8 (Algo) Part 2 Required: 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 (ie., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) Cash Flows from Operating Activities: Adjustments for noncash effects