Pharoah Inc. Statement of Financial Position December 31 Bank loan payable-non-current portion 13,900 10,100 Assets 2024...

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Pharoah Inc. Statement of Financial Position December 31 Bank loan payable-non-current portion 13,900 10,100 Assets 2024 2023 Common shares 242,000 200,000 Retained earnings 178,920 121,660 Cash $82,200 $46,700 Total liabilities and shareholders' equity $633,540 $459,790 Accounts receivable 79,900 36,900 Inventory Pharoah Inc. 131,000 102,000 Statement of Income Year Ended December 31, 2024 Estimated inventory returns 1,640 1,090 Sales Long-term investments 95,300 106,000 Cost of goods sold Gross profit Equipment 293,000 207,000 Operating expenses Accumulated depreciation (49,500) (39,900) Income from operations $318,000 100,200 217,800 82.600 135,200 Other income and expenses Total assets $633,540 $459,790 Interest expense $12,900 Liabilities and Shareholders' Equity Realized loss on sale of long-term investments 5,500 18,400 Income before income tax 116,800 Accounts payable $61,600 $48,500 Income tax expense 27,500 Property tax payable 11,300 18,300 Net income $89,300 Refund liability 820 630 Bank loan payable-current portion 125,000 60,600 Additional information regarding 2024: 1. Long-term investments were sold for $5,200, resulting in a realized loss of $5,500. Bank loan payable-non-current portion 13,900 10,100 2. New equipment costing $142,000 was purchased for $73,800 cash and a $68,200 bank loan payable. 3. Equipment costing $56,000 was sold for $15,400, resulting in a gain of $8,000. Common shares 242,000 200,000 4. Accounts payable relate to merchandise suppliers; property tax payable relates to operating expenses. Retained earnings 178,920 121,660 5. A dividend was paid during the year. 6. Operating expenses include $58,200 of depreciation expense and an $8,000 gain on disposal of equipment. Total liabilities and shareholders' equity $633,540 $459,790 7. The company issued common shares for $61,000 cash and bought back and retired some other common shares at the cost they were originally issued at. (a) Prepare the statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) PHAROAH INC. Statement of Cash Flows For the Year Ended December 31, 2024 Note X to the Statement of Cash Flows: Equipment costing $ issuing a bank loan payable for $68,200. was purchased by paying $73,800 cash Pharoah Inc. Statement of Financial Position December 31 Bank loan payable-non-current portion 13,900 10,100 Assets 2024 2023 Common shares 242,000 200,000 Retained earnings 178,920 121,660 Cash $82,200 $46,700 Total liabilities and shareholders' equity $633,540 $459,790 Accounts receivable 79,900 36,900 Inventory Pharoah Inc. 131,000 102,000 Statement of Income Year Ended December 31, 2024 Estimated inventory returns 1,640 1,090 Sales Long-term investments 95,300 106,000 Cost of goods sold Gross profit Equipment 293,000 207,000 Operating expenses Accumulated depreciation (49,500) (39,900) Income from operations $318,000 100,200 217,800 82.600 135,200 Other income and expenses Total assets $633,540 $459,790 Interest expense $12,900 Liabilities and Shareholders' Equity Realized loss on sale of long-term investments 5,500 18,400 Income before income tax 116,800 Accounts payable $61,600 $48,500 Income tax expense 27,500 Property tax payable 11,300 18,300 Net income $89,300 Refund liability 820 630 Bank loan payable-current portion 125,000 60,600 Additional information regarding 2024: 1. Long-term investments were sold for $5,200, resulting in a realized loss of $5,500. Bank loan payable-non-current portion 13,900 10,100 2. New equipment costing $142,000 was purchased for $73,800 cash and a $68,200 bank loan payable. 3. Equipment costing $56,000 was sold for $15,400, resulting in a gain of $8,000. Common shares 242,000 200,000 4. Accounts payable relate to merchandise suppliers; property tax payable relates to operating expenses. Retained earnings 178,920 121,660 5. A dividend was paid during the year. 6. Operating expenses include $58,200 of depreciation expense and an $8,000 gain on disposal of equipment. Total liabilities and shareholders' equity $633,540 $459,790 7. The company issued common shares for $61,000 cash and bought back and retired some other common shares at the cost they were originally issued at. (a) Prepare the statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) PHAROAH INC. Statement of Cash Flows For the Year Ended December 31, 2024 Note X to the Statement of Cash Flows: Equipment costing $ issuing a bank loan payable for $68,200. was purchased by paying $73,800 cash