Condensed financial data of Pharoah Company follow.
Comparative Balance Sheets
|Cash||$ 153,520||$ 91,960|
|Liabilities and Stockholders’ Equity|
|Accounts payable||$ 193,800||$ 127,870|
|Accrued expenses payable||31,350||39,900|
Income Statement Data
For the Year Ended December 31, 2022
|Cost of goods sold||$257,374|
|Operating expenses, excluding depreciation||23,579|
|Income tax expense||51,832|
|Loss on disposal of plant assets||14,250||444,372|
|Net income||$ 293,702|
|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.|
Further analysis reveals that accounts payable pertain to merchandise creditors.
Prepare a statement of cash flows for Pharoah Company using the direct method.