[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 $ 840 Gain on sale of building 12 $ 852 Expenses and loss: Cost of goods sold $ 320 Salaries 124 Insurance 44 Depreciation 127 Interest expense 54 Loss on sale of equipment 11 680 Income before tax 172 Income tax expense 86 Net income $ 86 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) Year 2021 2020 Change Cash $ 142 $ 96 $ 46 Accounts receivable 332 212 120 Inventory 317 433 (116 ) Prepaid insurance 62 96 (34 ) Accounts payable 218 113 105 Salaries payable 110 89 21 Deferred tax liability 68 56 12 Bond discount 186 208 (22 ) Required: 1. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the direct method.