Solution-Prepare a statement of cash flows using the

Prepare a statement of cash flows using the indirect method

Reference no: EM131783190

Condensed financial data of Pharoah Company follow.

Pharoah Company Comparative Balance Sheets December 31
Assets	2017	2016
Cash	mce_markernbsp;154,328	mce_markernbsp;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	mce_markernbsp;194,820	mce_markernbsp;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	mce_markernbsp;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: EM131783190

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Prepare a statement of cash flows using the indirect method

Reference no: EM131783190

Reference no: EM131783190

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