50.1K

Verified Solution

Link Copied!

Condensed financial data of Pharoah Inc. follow. \begin{tabular}{|c|c|c|} \hline Bonds payable & 209,000 & 277,400 \\ \hline Common stock & 418,000 & 332,500 \\ \hline Retained earnings & 444,600 & 200,355 \\ \hline Total & $1,296,750 & $978,025 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{\begin{tabular}{l} Pharoah Inc. \\ Income Statement Data \\ For the Year Ended December 31, 2025 \end{tabular}} \\ \hline Sales revenue & & $738,074 \\ \hline Less: & & \\ \hline Cost of goods sold & $257,374 & \\ \hline Operating expenses, excluding depreciation & 23,579 & \\ \hline Depreciation expense & 88,350 & \\ \hline Income tax expense & 51,832 & \\ \hline Interest expense & 8.987 & \\ \hline Loss on disposal of plant assets & 14,250 & 444,372 \\ \hline Net income & & $293,702 \\ \hline \end{tabular} Additional information: 1. New plant assets costing $190,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $109,250 and accumulated depreciation of $92,150 were sold for $2,850 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $49,457 was declared and paid during the year. 5. Common stock was issued at par for cash. 6. There were no significant noncash transactions. 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).)

Answer & Explanation Solved by verified expert

See Answer