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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).)

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