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Condensed financial data of Pharoah Company for 2020 and 2019 are presented below. PHAROAH COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019
Condensed financial data of Pharoah Company for 2020 and 2019 are presented below. PHAROAH COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $1,760 $1,130 Receivables 1,740 1.270 Inventory 1,640 1,880 Plant assets 1,890 1,700 Accumulated depreciation (1,280) (1.150 ) Long-term investments (held-to-maturity) 1.280 $7,030 1,400 $6,230 Accounts payable Accrued liabilities $1,200 190 $920 260 1,520 Bonds payable 1,380 Common stock 1,660 Retained earnings 1,870 2,390 $7,030 1,870 $6,230 PHAROAH COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6.970 Cost of goods sold 4.780 2,190 Gross margin Selling and administrative expenses 930 Income from operations 1,260 Other revenues and gains Gain on sale of investments 70 Income before tax 1.330 Income tax expense 550 Net income 780 Cash dividends 260 Income retained in business $520 Additional information: During the year, $80 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020 Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a signes -15,000 or in parenthesis es. (15,0000) PHAROAH COMPANY Statement of Cash Flows For the Year Ended December 31, 2020 (Indirect Method) Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Save for Later
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