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).)