Please prepare a statement of cash flows using the DIRECT method.

Exercise 23-12 Condensed financial data of Pharoah Company for 2017 and 2016 are presented below. PHAROAH COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 Cash $1,820 Receivables 1,730 Inventory 1,590 Plant assets 1,940 Accumulated depreciation (1,220) Long-term investments (held-to-maturity) 1,300 $7,160 2016 $1,130 1,280 1,870 1,690 (1,180 ) 1,450 $6,240 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings $1,200 190 1,430 1,930 2,410 $7,160 $920 230 1,530 1,710 1,850 $6,240 PHAROAH COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue Cost of goods sold Gross margin Selling and administrative expenses Income from operations Other revenues and gains Gain on sale of investments Income before tax Income tax expense Net income Cash dividends Income retained in business $6,840 4,630 2,210 930 1,280 90 1,370 550 820 260 $560 Additional information: During the year, $60 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017. Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)