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Presented below is the comparative balance sheet for Pharoah Inc, a private company reporting under ASPE, at December 31, 2021, and 2020: PHAROAH INC. Balance

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Presented below is the comparative balance sheet for Pharoah Inc, a private company reporting under ASPE, at December 31, 2021, and 2020: PHAROAH INC. Balance Sheet December 31 Assets 2021 Cash $59.200 Accounts receivable 101000 Inventory 205.000 Long-term investment 101 500 Property, plant and equipment 535.000 Less: Accumulated depreciation (162,500) $839 200 2020 $98,000 75,000 155,500 0 460,000 (140,000) $648.500 30-10,2 $47.000 0 Liabilities and Shareholders' Equity Accounts payable Dividends payable Income tax payable Long term notes payable Common shares Retained earnings $57,500 6,000 14.000 25.000 630,000 106,700 $839,200 15,000 0 525,000 61,500 $648,500 $655,200 432,000 223,200 PHAROAH INC. Income Statement Year Ended December 31, 2021 Sales Cost of goods sold Gross pront Operating expenses $147,500 Loss on sale of equipment 3,000 Profit from operations Interest expense 3,000 Interest revenue (4,500 Profit before income tax Income tax expense Pront 150,500 72,700 (1,500) 74,200 14,000 $60,200 Additional information: 1. Cash dividends of $15,000 were declared 2 Along-term investment was acquired for cash at a cost of $101,500. 3. Depreciation expenses included in the operating expenses 4. The company issued 10,500 common shares for cash on March 2, 2021. The fair value of the shares was $10 per share. The proceeds were used to purchase additional equipment. Equipment that originally cost $30.000 was sold during the year for cash. The equipment had a carryin value of $9,000 at the time of sale 6 The company issued a note payable for $28.000 and repaid $3,000 by year end. 7 All purchases of inventory are on credit. 8. Accounts Payable is used only to record purchases of inventory 5. Prepare a cash flow statement for the year using the Indirect method. (Show amounts that decrease cash flow with either a signes -15.000 or in parenthesis eg (15,000 PHAROAH INC. Cash Flow Statement - Indirect Method $ Adjustments to reconcile profitto Adjustments to reconcile profitto $

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