PHAROAH RETAILERS LTD. Statement of Financial Position December 31 Assets Cash Accounts receivable Inventory Furniture 168,00083,000 Accumulated depreciation Total assets Liabilities and Shareholders' Equity Accounts payable $353,000(48,000)$242,000(28,000) Bank loan payable (current portion) Bank loan payable (noncurrent portion) $53,00016,00084,00056,000$38,00014,00061,00051,000 \begin{tabular}{lccc} Assets & 2021 & 2020 \\ Cash & $14,000 & $9,000 \\ Accounts receivable & 50,000 & 38,000 \\ Inventory & 169,000 & 140,000 \\ Furniture & 168,000 & 83,000 \\ Accumulated depreciation & (48,000) & (28,000) \\ Total assets & $353,000 & $242,000 \\ \hline \end{tabular} Liabilities and Shareholders' Equity Accounts payable Bank loan payable (current portion) $53,00016,000$38,00014,000 Bank loan payable (noncurrent portion) 84,00061,000 Common shares Retained earnings Total liabilities and shareholders' equity 144,000$353,00078,000$242,000 Additional information regarding 2021: 1. Net income was $66,000. Additional information regarding 2021: 1. Net income was $66,000. 2. Depreciation expense was $20,000. 3. Payments made to the bank pertaining to the bank loan were $10,000. The company obtained some new bank loans during the year. 4. Common shares were issued during the year and the company did not buy back any shares. 5. During the year, the company did not sell any furniture. (a) Prepare a statement of cash flows using the indirect method for 2021. (Show amounts that decrease cash flow with either a - sign e.8. 15,000 or in parenthesis e.g. (15,000). PHAROAH RETAILERS LTD. Statement of Cash Flows Year Ended December 31, 2021 Cash flows from operating activities Net income Adjustments to reconcile net income to Depreciation expense