Exercise 12-5

The following information is available for Pharoah Company for the year ended December 31, 2017.

Beginning cash balance		$ 48,420
Accounts payable decrease		3,981
Depreciation expense		174,312
Accounts receivable increase		8,823
Inventory increase		11,836
Net income		305,692
Cash received for sale of land at book value		37,660
Cash dividends paid		12,912
Income taxes payable increase		5,057
Cash used to purchase building		310,964
Cash used to purchase treasury stock		27,976
Cash received from issuing bonds		215,200

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 Company Statement of Cash FlowsIndirect Method For the Year Ended December 31, 2017
Cash Flows from Operating Activities
Net Income		$
Adjustments to reconcile net income to
Net Cash Provided by Operating Activities
Depreciation Expense	$
Increase in Accounts Receivable
Increase in Inventory
Decrease in Accounts Payable
Increase in Income Taxes Payable
Net Cash Provided by Operating Activities
Cash Flows from Investing Activities
Sale of Land
Purchase of Building
Net Cash used by Investing Activities
Cash Flows from Financing Activities
Issuance of Bonds
Payment of Dividend
Purchase of Treasury Stock
Net Cash Provided by Financing Activities
Net Increase in Cash
Cash at Beginning of Period
Cash at End of Period		$