View Policies Current Attempt in Progress The statement of income and unclassified statement of financial position for Pharoah, Inc. follow: PHAROAH, INC. Statement of Financial Position December 31 Assets 2021 Cash $99,600 Trading investments 128.000 Accounts receivable 72,500 Inventory 120,700 Estimated inventory returns 2.500 Prepaid expenses 19.000 Equipment 319,500 Accumulated depreciation (49,000) Total assets $712.800 Liabilities and Shareholders' Equity Accounts payable $92.500 Property tax payable 9.900 Refund liability 1,100 Bank loan payable-current portion 50,000 Bank loan payable-noncurrent portion 102,300 Common shares 210,000 Retained earnings 247.000 Total liabilities and shareholders' equity $712,800 2020 $47,400 112,500 41,700 92,950 1,600 26,000 296.000 (53,000) $565,150 $72.900 6,600 800 175,050 22.300 180,000 107.500 $565,150 Question anan pacurrent pro Bank loan payable-honcurrent portion Common share Retained earnings Total abilities and shareholders equity BURU 102,300 210,000 247,000 $712,800 22,300 180,000 107.500 $565,150 PHAROAH, INC. Statement of Income Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses Income from operations Other income and expenses Unrealized gain on trading investments $15,500 Interest expense (4.710) Income before income tax Income tax expense Net income $543,700 185,700 358,000 116,500 241,500 10.790 252.290 46,000 $206,290 Income before income tax Income tax expense Net income 252.290 46,000 $206,290 1. Additional information regarding 2021: Prepaid expenses and property tax payable relate to operating expenses. New equipment costing $86,000 was purchased for $24,000 cash and a $62,000 long-term bank loan payable. Old equipment having an original cost of $62,500 was sold for $1,100. Accounts payable relate to inventory suppliers. Some of the bank loan was repaid during the year. 6. A dividend was paid during the year. Operating expenses include $46,300 of depreciation expense and a $11.100 loss on disposal of equipment 8. Common shares were issued for $42,000 cash during the year and some common shares were bought back and retired at the cost they were originally issued at. AN 5. 7 00 (a) Prepare the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either a sign eg. -15,000 or in parenthesis eg. (15,000.) PHAROAH, INC. Statement of Cash Flows