Question 6 The following are Pharoah Corp.'s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020. COMPARATIVE BALANCE SHEETS 2020 2019 Cash $812,400 $700,100 Increase (Decrease) $112,300 Accounts receivable 1,135,500 1,158,500 Inventory 1,844,800 1,713,900 (23,000) 130,900 Property, plant, and equipment 3,316,600 2,964,200 352,400 Accumulated depreciation Investment in Myers Co. Loan receivable 309,500 250,500 (1,160,900) (1,040,300) (120,600) 274,000 35,500 250,500 Total assets $6,508,400 $5,770,400 $738,000 Accounts payable $1,015,400 $955,000 $60,400 Income taxes payable 29,900 50,300 (20,400) Dividends payable 79,600 100,500 (20,900) Lease liability 412,000 412,000 Common stock, $1 par 500,000 500,000 Paid-in capital in excess of par-common stock Retained earnings 1,511,500 1,511,500 Total liabilities and stockholders' equity 2,960,000 $6,508,400 2,653,100 $5,770,400 306,900 $738,000 Additional information: 1. 2. On December 31, 2019, Pharoah acquired 25% of Myers Co's common stock for $274,000. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,096,000. Myers reported income of $142,000 for the year ended December 31, 2020. No dividend was paid on Myers's common stock during the year. During 2020, Pharoah loaned $312,200 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $61,700, plus interest at 10%, on December 31, 2020. 3. On January 2, 2020, Pharoah sold equipment costing $59,600, with a carrying amount of $37,700, for $40,200 cash. 4. On December 31, 2020, Pharoah entered into a capital lease for an office building. The present value of the annual rental payments is $412,000, which equals the fair value of the building. Pharoah made the first rental payment of $59,700 when due on January 2, 2021. 5. Net income for 2020 was $386,500. 6. Pharoah declared and paid the following cash dividends for 2020 and 2019. 2020 2019 Declared December 15, 2020 Paid February 28, 2021 December 15, 2019 February 28, 2020 Amount $79,600 $100,500 Prepare a statement of cash flows for Pharoah Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis eg. (15,000).)