Pharoah Corporation’s comparative balance sheet is presented below. PHAROAH CORPORATION Balance Sheet December 31 Assets 2021 2020 Cash $12,010 $8,980 Accounts receivable 17,810 19,660 Land 16,800 21,840 Buildings 58,800 58,800 Accumulated depreciation—buildings (12,600 ) (8,400 ) Total $92,820 $100,880 Liabilities and Shareholders’ Equity Accounts payable $10,390 $26,120 Common shares 63,000 57,960 Retained earnings 19,430 16,800 Total $92,820 $100,880 Additional information: 1. Profit was $19,010. Dividends declared and paid were $16,380. 2. No noncash investing and financing activities occurred during 2021. 3. The land was sold for cash of $4,120 resulting in a loss of $920 on the sale of the land. Prepare a cash flow statement for 2021 using the indirect method. Lu Corporation reports under ASPE. (Show amounts that decrease cash flow with either a - sign e.g. -15,000, or in parenthesis e.g. (15,000)). PHAROAH LIMITED Cash Flow Statement-Indirect method $ Adjustments to reconcile profit to $ $ $ $

Pharoah Corporation’s comparative balance sheet is presented below. PHAROAH CORPORATION Balance Sheet December 31 Assets 2021 2020 Cash $12,010 $8,980 Accounts receivable 17,810 19,660 Land 16,800 21,840 Buildings 58,800 58,800 Accumulated depreciation—buildings (12,600 ) (8,400 ) Total $92,820 $100,880 Liabilities and Shareholders’ Equity Accounts payable $10,390 $26,120 Common shares 63,000 57,960 Retained earnings 19,430 16,800 Total $92,820 $100,880 Additional information: 1. Profit was $19,010. Dividends declared and paid were $16,380. 2. No noncash investing and financing activities occurred during 2021. 3. The land was sold for cash of $4,120 resulting in a loss of $920 on the sale of the land. Prepare a cash flow statement for 2021 using the indirect method. Lu Corporation reports under ASPE. (Show amounts that decrease cash flow with either a - sign e.g. -15,000, or in parenthesis e.g. (15,000)). PHAROAH LIMITED Cash Flow Statement-Indirect method $ Adjustments to reconcile profit to $ $ $ $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Pharoah Corporation’s comparative balance sheet is presented below.

PHAROAH CORPORATION Balance Sheet December 31
Assets	2021		2020
Cash	$12,010		$8,980
Accounts receivable	17,810		19,660
Land	16,800		21,840
Buildings	58,800		58,800
Accumulated depreciation—buildings	(12,600	)	(8,400	)
Total	$92,820		$100,880
Liabilities and Shareholders’ Equity
Accounts payable	$10,390		$26,120
Common shares	63,000		57,960
Retained earnings	19,430		16,800
Total	$92,820		$100,880

Additional information:

1.		Profit was $19,010. Dividends declared and paid were $16,380.
2.		No noncash investing and financing activities occurred during 2021.
3.		The land was sold for cash of $4,120 resulting in a loss of $920 on the sale of the land.

Prepare a cash flow statement for 2021 using the indirect method. Lu Corporation reports under ASPE. (Show amounts that decrease cash flow with either a - sign e.g. -15,000, or in parenthesis e.g. (15,000)).

PHAROAH LIMITED Cash Flow Statement-Indirect method

		$
Adjustments to reconcile profit to

	$






	$


	$




		$

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