Condensed financial data of Pharoah Company follow.

Pharoah Company
Comparative Balance Sheets
December 31
Assets 2022 2021
Cash $ 153,520 $ 91,960
Accounts receivable 166,820 72,200
Inventory 213,750 195,415
Prepaid expenses 53,960 49,400
Long-term investments 262,200 207,100
Plant assets 541,500 460,750
Accumulated depreciation (95,000 ) (98,800 )
Total $1,296,750 $978,025
Liabilities and Stockholders’ Equity
Accounts payable $ 193,800 $ 127,870
Accrued expenses payable 31,350 39,900
Bonds payable 209,000 277,400
Common stock 418,000 332,500
Retained earnings 444,600 200,355
Total $1,296,750 $978,025

 

Pharoah Company
Income Statement Data
For the Year Ended December 31, 2022
Sales revenue $738,074
Less:
Cost of goods sold $257,374
Operating expenses, excluding depreciation 23,579
Depreciation expense 88,350
Income tax expense 51,832
Interest expense 8,987
Loss on disposal of plant assets 14,250 444,372
Net income $ 293,702

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.

Further analysis reveals that accounts payable pertain to merchandise creditors.
Prepare a statement of cash flows for Pharoah Company using the direct method.

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