Pharoah Company Comparative Balance Sheets December 31 Assets 2022 $177,760 2021 $ 106,480 Cash Accounts receivable 193,160 83,600 Inventory 247,500 226,270 Prepaid expenses 62,480 57,200 Long-term investments 303,600 239,800 Plant assets 627,000 533,500 Accumulated depreciation (110,000) (114,400 ) Total $1,501,500 $1,132,450 Liabilities and Stockholders' Equity Accounts payable $ 224,400 $ 148,060 Accrued expenses payable 36,300 46,200 Bonds payable 242,000 300 321,200 000 Common stock 484,000 385,000 Retained earnings 514,800 231,990 Total $1,501,500 $1,132,450 Pharoah Company Income Statement Data For the Year Ended December 31, 2022 Sales revenue $854,612 Less: Cost of goods sold Operating expenses, excluding depreciation $298,012 27,302 102,300 Depreciation expense Income tax expense 20,016 Interest expense 10,406 16,500 Loss on disposal of plant assets 514,536 $340,076 Net income Additional information: 1. New plant assets costing $220,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $126,500 and accumulated depreciation of $106,700 were sold for $3,300 cash, 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $57,266 was declared and paid during the year. Pharoah Company Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Net Income 340076 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense Loss on Disposal of Plant Assets Increase in Accounts Receivable Increase in Inventory Increase in Prepaid Expenses Increase in Accounts Payable Decrease in Accrued Expenses Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Plant Assets Purchase of Investments Purchase of Plant Assets Net Cash used by Investing Activities Cash Flows from Financing Activities - Payment of Cash Dividends Redemption of Bonds Sale of Common Stock Net Cash used by Financing Activities - Net Increase in Cash Sale of Common Stock Net Cash used by Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period