Condensed financial data of Pharoah Inc. follow. Pharoah Inc. Comparative Balance Sheets December 31 2025 2024...

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Condensed financial data of Pharoah Inc. follow. Pharoah Inc. Comparative Balance Sheets December 31 2025 2024 Assets Cash $ 153,520 $91,960 Accounts receivable 166,820 72,200 Inventory 213,750 195,415 Prepaid expenses 53,960 49,400 Long-term investments 262,200 207,100 Plant assets 541,500 460,750 Accumulated depreciation (95,000) (98,800) Total $1,296,750 $978,025 Liabilities and Stockholders' Equity Liabilities and Stockholders' Equity Accounts payable $193,800 $127,870 Accrued expenses payable 31,350 39,900 Bonds payable 209,000 277,400 Common stock 418,000 332,500 Retained earnings 444,600 200,355 Total $1,296,750 $978,025 Pharoah Inc. Income Statement Data For the Year Ended December 31, 2025 Sales revenue Less: Cost of goods sold Operating expenses, excluding depreciation Depreciation expense $257,374 23,579 $738,074 Pharoah Inc. Income Statement Data For the Year Ended December 31, 2025 Sales revenue $738,074 Less: Cost of goods sold $257,374 Operating expenses, excluding depreciation 23,579 Depreciation expense 88,350 Income tax expense 51,832 Interest expense 8,987 Loss on disposal of plant assets 14,250 444,372 Net income $293,702 Additional information: 1. New plant assets costing $190,000 were purchased for cash during the year. Additional information: 1. New plant assets costing $190,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $109,250 and accumulated depreciation of $92,150 were sold for $2,850 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $49,457 was declared and paid during the year. 5. Common stock was issued at par for cash. 6. There were no significant noncash transactions. 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).) PHAROAH INC. Statement of Cash Flows - Indirect Method 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).) PHAROAH INC. Statement of Cash Flows - Indirect Method Adjustments to reconcile net income to > $ $ > > > > > 67 Condensed financial data of Pharoah Inc. follow. Pharoah Inc. Comparative Balance Sheets December 31 2025 2024 Assets Cash $ 153,520 $91,960 Accounts receivable 166,820 72,200 Inventory 213,750 195,415 Prepaid expenses 53,960 49,400 Long-term investments 262,200 207,100 Plant assets 541,500 460,750 Accumulated depreciation (95,000) (98,800) Total $1,296,750 $978,025 Liabilities and Stockholders' Equity Liabilities and Stockholders' Equity Accounts payable $193,800 $127,870 Accrued expenses payable 31,350 39,900 Bonds payable 209,000 277,400 Common stock 418,000 332,500 Retained earnings 444,600 200,355 Total $1,296,750 $978,025 Pharoah Inc. Income Statement Data For the Year Ended December 31, 2025 Sales revenue Less: Cost of goods sold Operating expenses, excluding depreciation Depreciation expense $257,374 23,579 $738,074 Pharoah Inc. Income Statement Data For the Year Ended December 31, 2025 Sales revenue $738,074 Less: Cost of goods sold $257,374 Operating expenses, excluding depreciation 23,579 Depreciation expense 88,350 Income tax expense 51,832 Interest expense 8,987 Loss on disposal of plant assets 14,250 444,372 Net income $293,702 Additional information: 1. New plant assets costing $190,000 were purchased for cash during the year. Additional information: 1. New plant assets costing $190,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $109,250 and accumulated depreciation of $92,150 were sold for $2,850 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $49,457 was declared and paid during the year. 5. Common stock was issued at par for cash. 6. There were no significant noncash transactions. 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).) PHAROAH INC. Statement of Cash Flows - Indirect Method 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).) PHAROAH INC. Statement of Cash Flows - Indirect Method Adjustments to reconcile net income to > $ $ > > > > > 67