PHAROAH LTD. Income Statement Year Ended September 30, 2021 Sales $565,000 Cost of goods sold 320,000 Gross profit 245,000 Operating expenses $ 91,000 Depreciation expense 16,000 Gain on sale of land (26,000) 81,000 Profit before income tax 164,000 Income tax expense 41,000 Profit $123,000 1. Additional information: Accounts receivable decreased by $14,500 during the year. 2. Inventory increased by $6,000 during the year. 3. Prepaid expenses decreased by $4,000 during the year. 4. Accounts payable to suppliers increased by $9,500 during the year. 5. Accrued expenses payable increased by $3,500 during the year. 6. Income tax payable decreased by $5,300 during the year. PHAROAH LTD. Cash Flow Statement (Partial)-Indirect Method $ Adjustments to reconcile profitto > $ > > V S