Question 16 The comparative statement of financial position for Pharoah Retailers Ltd. follows: PHAROAH RETAILERS LTD. Statement of Financial Position December 31 Assets 2018 2017 Cash $ 19,000 $ 8,000 Accounts receivable 50,000 38,000 Inventory 167,000 142,000 Furniture 168,000 85,000 Accumulated depreciation (43,000) (22,000) Total assets S361,000 $251,000 Liabilities and Shareholders' Equity Accounts payable $ 46,000 $ 36,000 Bank loan payable (noncurrent) 107,000 79,000 Common shares 52,000 Retained earnings 151,000 84,000 Total liabilities and shareholders' equity $361,000 $251,000 57,000 Additional information: 1 Net income was $67,000 in 2018. 2. Depreciation expense was $21,000 in 2018. 3. Payments made to the bank pertaining to the bank loan were $10,000 in 2018. Some new loans were obtained that year. 4. Common shares were issued in 2018 and no shares have been bought back by the company. 5. In 2018, no furniture was sold. (a) Prepare statement of cash flows using the indirect method for 2018. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000). PHAROAH RETAILERS LTD. Statement of Cash Flows-Indirect Method PHAROAH RETAILERS LTD. Statement of Cash Flows-Indirect Method $ Adjustments to reconcile net income to * Question 11 Iarna Imited issurd $81.DCI of 10-year, 9:45 hands on January 1, 2014, when the market Interest rate was (it. Tacoma received $7,091 when the bords were issued. Interest is payable semi-annually on July 1 and January 1. larova has a December 1 year and Record the issue of the bonds on January 1. (Credit account tres are automatically Indented when the annount is entered. Do not Indent manually.) Debit Credit Date Account Titles and Explanation Jan. 1 Record the payment of interest on July 1. (Round answers to decimal places, e.g. 5,275. Credit account titles are automatically inderted when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 1 Record the accrual of interest on December 31. (Round answers to decimal places, e.g. 5,275. Credit account titles are automatically indented when the annount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Prove the amount of cash mcelvet when the bands were sold hy determining the hands' sent value (Issue price) on January 1, 2018. Prove the carrying amount of the bonds, one year later, lay determining the present value of the bonds at that time. (Round answers O decimal places, e.g. 5,275.) Honds' present value (Issuc price) on anuary 1, 2018 Present value of the bonds