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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]

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[The following information applies to the questions displayed below.] 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:
Sales	$	710
Gain on sale of building		12		$	722
Expenses and losses:
Cost of goods sold	$	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
($ in thousands)
	Year
		2021			2020		Change
Cash	$	125		$	109		$	16
Accounts receivable		315			225			90
Inventory		330			416			(86	)
Prepaid insurance		67			79			(12	)
Accounts payable		201			126			75
Salaries payable		120			102			18
Deferred tax liability		78			61			17
Bond discount		185			209			(24	)

Problem 21-8 (Algo) Part 1

Required: 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., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)

Cash Flows from Operating Activities:
Net cash flows from operating activities

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., 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:
Changes in operating assets and liabilities:
Net cash flows from operating activities