Assignment
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Condensed financial data of Pharoah Company follow.
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Pharoah Company
Comparative Balance Sheets
December 31
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Assets
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2017
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2016
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Cash
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$ 154,328
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$ 92,444
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Accounts receivable
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167,698
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72,580
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Inventory
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214,875
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196,444
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Prepaid expenses
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54,244
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49,660
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Long-term investments
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263,580
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208,190
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Plant assets
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544,350
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463,175
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Accumulated depreciation
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(95,500)
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(99,320)
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Total
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$1,303,575
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$983,173
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Liabilities and Stockholders' Equity
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Accounts payable
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$ 194,820
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$ 128,543
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Accrued expenses payable
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31,515
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40,110
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Bonds payable
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210,100
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278,860
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Common stock
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420,200
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334,250
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Retained earnings
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446,940
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201,410
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Total
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$1,303,575
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$983,173
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Pharoah Company
Income Statement Data
For the Year Ended December 31, 2017
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Sales revenue
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$741,959
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Less:
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Cost of goods sold
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$258,729
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Operating expenses, excluding depreciation
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23,703
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Depreciation expense
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88,815
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Income tax expense
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52,105
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Interest expense
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9,034
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Loss on disposal of plant assets
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14,325
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446,711
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Net income
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$ 295,248
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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).)