The statement of income for Pharoah Ltd., a private company reporting under ASPE, is presented here:

PHAROAH LTD.

Statement of Income

Year Ended November 30, 2021

Sales $8,100,000

Cost of goods sold 4,500,000

Gross profit 3,600,000

Operating expenses 2,080,000

Income from operations 1,520,000

Interest expense 105,000

Income before income tax 1,415,000

income tax expense 310,000

Net income $1,105,000

Additional information regarding 2021:

1.Operating expenses include $76,000 of depreciation expense and a $103,000 impairment loss on property, plant, and equipment.

2.Accounts receivable increased by $189,000.

3.Inventory decreased by $60,000.

4.Prepaid expenses related to operating expenses increased by $45,000.

5.Accounts payable to suppliers of inventory decreased by $182,000.

6.Rent payable related to operating expenses decreased by $94,000.

7.Interest payable decreased by $14,000.

8.Deferred revenue received from customers decreased by $21,000.

9.Income tax payable increased by $23,000.

(A) Prepare the operating activities section of the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Current Attempt in Progress The statement of income for Pharoah Ltd., a private company reporting under ASPE, is presented here: PHAROAH LTD. Statement of Income Year Ended November 30, 2021 Sales $8,100,000 Cost of goods sold 4,500,000 Gross profit 3,600,000 Operating expenses 2,080,000 Income from operations 1,520,000 Interest expense 105,000 Income before income tax 1,415,000 Income tax expense 310,000 Net income $1,105,000 Additional information regarding 2021: 1. Operating expenses include $76,000 of depreciation expense and a $103,000 impairment loss on property, plant, and equipment. 2. Accounts receivable increased by $189,000. 3. Inventory decreased by $60,000. 4. Prepaid expenses related to operating expenses increased by $45,000. 5. Accounts payable to suppliers of inventory decreased by $182,000. 6. Rent payable related to operating expenses decreased by $94,000. 7. Interest payable decreased by $14,000. 8. Deferred revenue received from customers decreased by $21,000. 9. Income tax payable increased by $23,000.Prepare the operating activities section of the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e-g. (15,000).) PHAROAH LTD. Statement of Cash Flows (Partial) Year Ended November 30, 2021 Operating activities Net Income V $ 1,105,000 Adjustments to reconcile net income to Net cash provided (used) by operating activities Depreciation expense V 76,000 Impairment loss on property, plant and equipment 103,000 Increase in accounts receivable Decrease in inventory 60,000 Increase in prepaid expenses Decrease in accounts payable Decrease in rent payable Decrease in interest payable v Decrease in deferred revenue Increase in income tax payable Net cash provided by operating activities $