The following are the financial statements of Pharoah Company. PHAROAH COMPANY Balance Sheet December 31 Assets 2021 Cash $31.920 Accounts receivable 25,200 Inventory 22.680 Equipment 50,400 Accumulated depreciation equipment 24,360) Total $105,840 Liabilities and Shareholders' Equity Accounts payable $20,160 Income taxes payable 5.880 Notes payable 22.680 Common shares 15.120 Retained earnings 42.000 Total $105.840 2020 $16.800 11,760 16.800 65.520 (20.160) $90.720 $12.600 6.720 27,720 11,760 31.920 $90.720 PHAROAH COMPANY Income Statement For the Year Ended December 31, 2021 Sales $203,280 Cost of goods sold 147,000 Gross profit 56,280 Operating expenses 20.160 Income from operations 36,120 Interest expense 2.520 Income before income taxes 33,600 Income tax expense 6,720 Profit $26.880 Additional Information: 1 Dividends declared and paid were $16,800. Pharoah reports under ASPE 2 During the year, equipment was sold for $7.140 cash. This equipment cost $15.120 originally and had a carrying value of 57,140 at the time of sale 3. All depreciation expense. $12,180, is in the operating expenses. All sales and purchases are on account 4 Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - signes, -15,000 or in parenthesis eg. (15,0001) PHAROAH COMPANY Cash Flow Statement - Indirect Method Adjustments to reconcile profit to > LA > LA