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Condensed financial data of Pharoah Company for 2020 and 2019 are presented below. PHAROAH COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 Cash 2020 $1,830 1.710 1.590 2019 $1,180 1,320 1.920 Receivables Inventory Plant assets 1,890 1.710 Accumulated depreciation Long-term investments (held-to-maturity) (1220) (1.190) 1,320 1.440 $7,120 $6,380 Accounts payable Accrued liabilities Bonds payable $1.190 210 1.400 1940 2.380 97.120 $890 260 1.580 1660 1.990 56.380 Common stock Retained earnings PHAROAH COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,720 4.680 Cost of goods sold Gross margin Selling and administrative expenses 2,040 920 Income from operations 1.120 Other revenues and gains Gain on sale of investments Income before tax 1.200 Income tax expense 550 Net income 650 Cash dividends 260 Income retained in business $390 Additional information: During the year. $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020. Prepare a 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 COMPANY Statement of Cash Flows For the Year Ended December 31, 2020 (Indirect Method) Cash Flows from Operating Activities Netcome Adjustments to reconcile net income to NetCash Provided by Operating Acelvis Depreciation Expanse Canon Sele of investments Increase in Accounts Receivable Decrease in Inventory Increase in Accounts Payable Decrease in Accrued Liables Net Cash Provided by Operating Aceites y Cash Flows from Investing Activities Purchase of Plent Assets Purchase of Held-o-Maturity Investments Net Ceah Provided by Investing Activities Cash Flow from Financing Acties Payment of Cash Dividendo Redemption of Bonds Payable Lauance of Common Stock for Plant Ant Net Ceah Used by Financing Activities Net increase in Ceah Cashet Beginning of Period Cash et End of Period Nonces Investing and Financing Activit y Lasuance of Common Stock for lant Aneta

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