Create a statement of cash flows using the indirect method

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Reference no: EM131782717

Assignment

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Condensed financial data of Pharoah Company follow.

Pharoah Company
Comparative Balance Sheets
December 31

Assets

2017

2016

Cash

$ 154,328

$ 92,444

Accounts receivable

167,698

72,580

Inventory

214,875

196,444

Prepaid expenses

54,244

49,660

Long-term investments

263,580

208,190

Plant assets

544,350

463,175

Accumulated depreciation

(95,500)

(99,320)

Total

$1,303,575

$983,173

Liabilities and Stockholders' Equity



Accounts payable

$ 194,820

$ 128,543

Accrued expenses payable

31,515

40,110

Bonds payable

210,100

278,860

Common stock

420,200

334,250

Retained earnings

446,940

201,410

Total

$1,303,575

$983,173

Pharoah Company
Income Statement Data
For the Year Ended December 31, 2017

Sales revenue

$741,959


Less:



Cost of goods sold

$258,729


Operating expenses, excluding depreciation

23,703


Depreciation expense

88,815


Income tax expense

52,105


Interest expense

9,034


Loss on disposal of plant assets

14,325

446,711

Net income

$ 295,248


Additional information:

1. New plant assets costing $191,000 were purchased for cash during the year.

2. Old plant assets having an original cost of $109,825 and accumulated depreciation of $92,635 were sold for $2,865 cash.

3. Bonds payable matured and were paid off at face value for cash.

4. A cash dividend of $49,718 was declared and paid during the year.

Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Reference no: EM131782717

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