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Selected information from Pharoah Ltd's statement of financial position and income statement is as follows: PHAROAH LTD. Statement of Financial Position (partial) December 31 2018

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Selected information from Pharoah Ltd's statement of financial position and income statement is as follows: PHAROAH LTD. Statement of Financial Position (partial) December 31 2018 2017 Current assets Accounts receivable Inventory Prepaid expenses $ 7,600 $12,400 5,000 4,200 4,800 2,600 Current liabilities Accounts payable Income tax payable Accrued liabilities Bank loan payable-current portion 4,250 2,600 55o 2,900 1,350 9.000 1,900 5,90 HAROAH LTD. Income Statement Year Ended December 31, 2018 Net sales Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income tax Income tax expense Net income $ 190,000 113,000 77,000 59,000 18,000 2,000 16,000 3,000 $13,000 Additional information: 1. Prepaid expenses and accrued liabilities relate to operating expenses 2. Accounts payable relate to purchases of merchandise 3 Operating expenses included depreciation expense of $ 11,500 and a loss of $ 5.600 on the disposal of equipment Prepare the operating activities section of the statement of cash flaws, using the direct method.(Show amounts that decrease cash flow with either a-sign esA 5.000 or in Darenthesise (15,000).) either a -signe-15,000 or in parenthesis eg. (15,000)) PUFFY LTD. Statement of Cash Flows-Direct Method Year Ended December 31. 2018 Cash flows from operating activities Cash receipts from customers 194800 Cash payments To suppliers 112150 For operating expenses 59650 2000 For interest 1650 For income tax 175450 19350 Net cash provided by operating activities

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