Exercise 23-11 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 2016 $1,820 $1,140 1,290 1,860 1,710 2017 Cash Receivables Inventory Plant assets Accumulated depreciation Long-term investments (held-to-maturity) 1,780 1,590 1,870 (1,220) (1,150) 1,270 1,420 $7,110 $6,270 $880 240 1,580 1,680 1,890 $6,270 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings $1,170 210 1,390 1,930 2,410 $7,110 PHAROAH COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 $6,930 4,750 2,180 940 1,240 Sales revenue Cost of goods sold Gross margin Selling and administrative expenses Income from operations Othe r revenues and gains 80 1,320 540 780 260 $520 Gain on sale of investments Income before tax Income tax expense Net income Cash dividends Income retained in business Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017 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 Flows (Indirect Method) Adjustments to reconcile net income to