Presented below are the financial statements of Pharoah Company Ltd.

PHAROAH COMPANY LTD. Comparative Statements of Financial Position December 31
Assets		2017			2016
Equipment		59,780			77,660
Accumulated depreciationequipment		(29,450	)		(23,630	)
Inventory		29,430			20,860
Accounts receivable		32,320			19,040
Cash		37,880			20,240
Total		129,960			114,170
Equity and Liabilities
Share capitalordinary		18,600			13,220
Retained earnings		49,180			42,730
Bonds payable		26,630			33,760
Accounts payable		28,430			16,370
Income taxes payable		7,120			8,090
Total		129,960			114,170

PHAROAH COMPANY LTD. Income Statement For the Year Ended December 31, 2017
Sales revenue		241,100
Cost of goods sold		176,970
Gross profit		64,130
Operating expenses		24,570
Income from operations		39,560
Interest expense		2,230
Income before income taxes		37,330
Income tax expense		7,280
Net income		30,050

Additional data:

1.		Depreciation expense is 13,940.
2.		Dividends declared and paid were 23,600.
3.		During the year, equipment was sold for 9,760 cash. This equipment cost 17,880 originally and had accumulated depreciation of 8,120 at the time of sale.

(a)

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).)

Presented below are the financial statements of Pharoah Company Ltd. PHAROAH COMPANY LTD. Comparative Statements of Financial Position December 31 Assets 2017 Equipment 59,780 Accumulated depreciation-equipment (29,450) Inventory 29,430 Accounts receivable 32,320 Cash 37,880 Total 129,960 2016 77,660 (23,630 ) 20,860 19,040 20,240 114,170 Equity and Liabilities Share capital-ordinary Retained earnings Bonds payable Accounts payable Income taxes payable Total 18,600 49,180 26,630 28,430 7,120 129,960 13,220 42,730 33,760 16,370 8,090 114,170 PHAROAH COMPANY LTD. Income Statement For the Year Ended December 31, 2017 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income 241,100 176,970 64,130 24,570 39,560 2,230 37,330 7,280 30,050 Additional data: 1. Depreciation expense is 13,940. 2. Dividends declared and paid were 23,600. 3. During the year, equipment was sold for 9,760 cash. This equipment cost 17,880 originally and had accumulated depreciation of 8,120 at the time of sale. (a) 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 COMPANY LTD. Partial Statement of Cash Flows Adjustments to reconcile net income to