Problem 22-7 (a) (direct method) SFP accounts of Pharoah Inc., which follows IFRS, follow: PHAROAH INC. Comparative Statement of Financial Position Accounts December 31, 2020 and 2019 December 31 Debit accounts 2020 2019 Cash $45,180 $34,050 Accounts receivable 67,530 60,050 Merchandise inventory 30,350 24,250 Long-term FV-NI investments 22,810 40,000 Machinery 29,840 18,500 Buildings 67,160 56,000 Land 7,500 7,500 $270,370 $240,350 Credit accounts Allowance for doubtful accounts Accumulated depreciation-machinery Accumulated depreciation-buildings Accounts payable Accrued liabilities Income taxes payable Long-term note payable-non-trade Common shares Retained earnings $1,580 5,525 13,805 30,040 2,480 1,040 27,000 150,000 38,900 $270,370 $830 2,150 9,300 24,800 1,230 1,540 32,000 125,000 43,500 $240,350 Additional information: Additional information: Pharoah Inc. has adopted the policy of cassifying interest paid as operating activities and dividends paid as financing activities. 1. Cash dividends declared during the year were $15,720. 2. A 20% stock dividend was declared during the year and $25,000 of retained earnings was capitalized. 3. FVNI investments that cost $19,600 and had a fair value at December 31, 2019, of $25,300 were sold during the year for $23, 4. Machinery that cost $3,850 and had $750 of depreciation accumulated was sold for $2,180. Pharoah's 2020 statement of income is as follows: Sales revenue Cost of goods sold Gross margin Operating expenses (includes $8,630 deprecation and $5,400 bad debts) Income from operations Loss on disposal of FV-NI investments $(2,060) Interest expense (3,000) Loss on disposal of machinery Income before tax Income tax expense Net Income $635,000 375,000 260,000 180,900 79,100 (920) (5,980) 73,120 37,000 $36,120 Calculate net cash flow from operating activities using the direct method. (Show amounts that decrease cash flow with either a (15,000).)