Condensed financial data of Pharoah Company for 2017 and 2016 are presented below.

PHAROAH COMPANY

COMPARATIVE BALANCE SHEET

AS OF DECEMBER 31, 2017 AND 2016

2017

2016

Cash$1,790

$1,150

Receivables1,780

1,330

Inventory1,620

1,890

Plant assets1,930

1,700

Accumulated depreciation(1,200

)

(1,180

)

Long-term investments (held-to-maturity)1,310

1,420

$7,230

$6,310

Accounts payable$1,210

$920

Accrued liabilities210

240

Bonds payable1,370

1,530

Common stock1,860

1,670

Retained earnings2,580

1,950

$7,230

$6,310

PHAROAH COMPANY

INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2017

Sales revenue$6,970

Cost of goods sold4,680

Gross margin2,290

Selling and administrative expenses940

Income from operations1,350

Other revenues and gainsGain on sale of investments80

Income before tax1,430

Income tax expense540

Net income890Cash dividends

260

Income retained in business

$630

Additional information:

During the year, $70of common stock was issued in exchange for plant assets. No plant assets were sold in 2017.

Prepare statement of cash flows using the indirect method.