Pharoah Company reported the following information for 2022. Pharoah Company Comparative Balance Sheets December 31 Assets 2022 2021 Cash $41,300 $25,200 43,400 15,400 Accounts receivable Inventory Prepaid expenses Change Increase/Decrease $16,100 Increase 28,000 Increase 30,800 Increase 1,400 Increase 10,500 Decrease 30,800 -0- 4,200 2,800 Land 38,500 49,000 140,000 140,000 -0- (14,700) (9,800) Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment 128,100 47,600 4,900 Increase 80,500 Increase 12,600 Increase (19,600) (7.000) $392,000 $263,200 Totals $30,100 $28,000 0 7,000 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock ($1 par) Retained earnings 70,000 105,000 $2,100 Increase 7,000 Decrease 35,000 Decrease 119,000 Increase 49,700 Increase 161,000 42,000 130,900 81,200 Totals $392,000 $263,200 Pharoah Company Income Statement For the Year Ended December 31, 2022 Sales revenue $658,700 Cost of goods sold $332,500 Operating expenses 161,700 Interest expense 8,400 Loss on disposal of equipment 1,400 504,000 Income before income taxes 154,700 Income tax expense 45,500 Net income $109,200 Additional information: 1. Operating expenses include depreciation expense of $28,000. 2. Land was sold at its book value for cash. 3. Cash dividends of $59,500 were declared and paid in 2022. 4. Equipment with a cost of $116,200 was purchased for cash. Equipment with a cost of $35,700 an 5. Bonds of $35,000 were redeemed at their face value for cash. 6. Common stock ($1 par) of $119,000 was issued for cash. Pharoah Company Statement of Cash Flows-Indirect Method For the Year Ended December 31, 2022 109200 : $ 28000 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Cash Flows from Financing Activities Depreciation Expense Loss on Disposal of Equipment Increase in Accounts Receivable Increase in Inventory Increase in Prepaid Expenses Increase in Accounts Payable Decrease in Accrued Expenses Payable : 1400 (28000) 30800 Net Cash used by Operating Activities Cash Flows from Investing Activities Loss on Disposal of Equipment Decrease in Accrued Expenses Payable : Gain on Disposal of Equipment