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Please prepare a cash flow statement using the direct method . Presented below is the comparative balance sheet for Pharoah Inc., a private company reporting
Please prepare a cash flow statement using the direct method.
Presented below is the comparative balance sheet for Pharoah Inc., a private company reporting under ASPE, at December 31, 2024, and 2023: Additional information: 1. Cash dividends of $17,100 were declared. 2. A long-term investment was acquired for cash at a cost of $115,710. 3. Depreciation expense is included in the operating expenses. 4. The company issued 11,970 common shares for cash on March 2,2024 . The fair value of the shares was $10 per share. The proceeds were used to purchase additional equipment. 5. Equipment that originally cost $34,200 was sold during the year for cash. The equipment had a carrying value of $10,260 at the time of sale. 6. The company issued a note payable for $31,920 and repaid $3,420 by year end. 7. All purchases of inventory are on credit. 8. Accounts payable is used only to record purchases of inventory. 10Step by Step Solution
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