Assignment:

Prepare a Statement of Cash Flows, using the template on page 3, for Pharoah Company using the information below.

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