Sales revenue

Cost of goods sold

Total cost of goods sold

$\frac{4,640,700}{3,056,300}$

Gross profit

Operating expenses

Selling expenses

$446,100$

Administrative expenses

Additional information:

Accounts receivable decreased $$386,500$ during the year, and inventory decreased $$324,900.$

Prepaid expenses increased $$147,600$ during the year.

Accounts payable to suppliers of inventory decreased $$346,300$ during the year.

Accrued expenses payable decreased $$98,700$ during the year.

Administrative expenses include depreciation expense of $$111,200.$

PHAROAH COMPANY

Statement of Cash Flows $($Partial$)-$ Indirect Method

Adjustments to reconcile net income to

$