Pharoah Ski Haus had the following statements prepared as of December 31, 2020. PHAROAH SKI HAUS COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $ 2,500 $ 4,000 Accounts receivable 104,000 98,000 Short-term debt investments (available-for-sale) 97,000 122,000 Inventories 91,000 55,000 Prepaid insurance 3,800 5,900 Ski equipment 90,000 43,000 Accumulated depreciation-equipment (23,000) (18,000) Trademarks 80,000 83,000 Total assets $445,300 $392,900 Accounts payable $ 89,100 $ 74,000 Income taxes payable 21,400 16,000 Wages payable 4,100 8,800 Short-term loans payable 23,300 0 Long-term loans payable 78,500 122,000 Common stock, $1 par 100,000 100,000 20,000 20,000 Additional paid-in capital Retained earnings 108,900 52,100 Total liabilities & stockholders' equity $ 445,300 $ 392,900 PHAROAH SKI HAUS INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales $ 535,600 301,000 Cost of goods sold Gross profit 234,600 Operating expenses 93,000 Operating income 141,600 Interest expense $ 20,500 Loss on sale of equipment 4,000 24,500 Income before tax 117,100 Income tax expense 41,300 Net income $ 75,800 Additional information: Additional information: 1. Dividends in the amount of $ 19,000 were declared and paid during 2020. 2. Depreciation expense and amortization expense are included in operating expenses. 3. Equipment that had a cost of $ 24,500 and was 20% depreciated was sold during 2020. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) PHAROAH SKI HAUS Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income $ 75800 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense $ 9900 Loss on Sale of Equipment > 4000 Increase in Accounts Receivable 25000 Increase in Inventories > -36000 Increase in Prepaid Insurance 2100 Increase in Accounts Payable > 15100 Increase in Income Taxes Payable Increase in Wages Payable Increase in Wages Payable Net Cash Used by Operating Activities Cash Flows from Investing Activities Sale of Equipment Purchase of Equipment Purchase of Available-for-Sale Investments Net Cash Provided by Investing Activities Cash Flows from Financing Activities Proceeds on Short-Term Loan Principal Payment on Long-term Loan Dividend Payments Net Cash Used by Financing Activities Purchase of Available-for-Sale Investments Net Cash Provided by Investing Activities Cash Flows from Financing Activities Proceeds on Short-Term Loan Principal Payment on Long-term Loan Dividend Payments Net Cash Used by Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period $