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The income statement of Pharoah Company is shown below: PHAROAH COMPANY Income Statement For the Year Ended December 31, 2022 Sales $9,210,000 Cost of goods
The income statement of Pharoah Company is shown below: PHAROAH COMPANY Income Statement For the Year Ended December 31, 2022 Sales $9,210,000 Cost of goods sold 5,440,000 Gross profit 3,770,000 Operating expenses Selling and administrative expenses $1,210,000 Depreciation expense 71,000 Amortization expense 40,000 1,321,000 Net income $2,449,000 Additional information: 1. Accounts receivable increased $700,000 during the year. 2. Inventory increased $341,000 during the year. 3. Prepaid expenses increased $231,000 during the year. 4. Accounts payable to merchandise suppliers increased $125,000 during the year. 5. Accrued expenses payable increased $182,000 during the year. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2022, for Pharoah Company, using the direct method. PHAROAH COMPANY Statement of Cash Flows $ $
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