Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A comparative balance sheet for Pharoah Corporation is presented below: PHAROAH CORPORATION Comparative Balance Sheet 2022 2021 Assets Cash Accounts receivable (net) Prepaid insurance.
A comparative balance sheet for Pharoah Corporation is presented below: PHAROAH CORPORATION Comparative Balance Sheet 2022 2021 Assets Cash Accounts receivable (net) Prepaid insurance. Land Equipment Accumulated depreciation Total assets $41,100 $32,700 72.550 61,700 27,550 18,700 19,700 47,650 71,700 61,700 (22.550) (14,700) $210,050 $207,750 Liabilities and Stockholder's Equity Accounts payable $13,550 $7,700 Bonds payable 28,700 20,700 Common stock 145,100 116,700 Retained earnings 22,700 62,650 Total liabilities and stockholders' equity $210,050 $207,750 Additional information: 1. Net loss for 2022 is $24,250. 2. Cash dividends of $15,700 were declared and paid in 2022. 3. Land was sold for cash at a loss of $5,700. This was the only land transaction during the year. 4. Equipment with a cost of $18,400 and accumulated depreciation of $11,700 was sold for $6,700 cash. 5. $23,700 of bonds were retired during the year at carrying (book) value. 6. Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was $28,400. Prepare a statement of cash flows for the year ended 2022 using the indirect method. (Show amounts that decrease cash flow with either a-sign eg.-15,000 or in parenthesis eg. (15,000))
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started