Pharoah Company Comparative Balance Sheets
December 31
Assets 2022 2021
Cash $ 55,760 $ 36,900
Accounts receivable 41,000 47,560
Inventory 124,189 116,440
Prepaid expenses 12,530 17,220
Land 118,900 106,600
Buildings 164,000 164,000
Accumulated depreciation—buildings (49,200) (32,800)
Equipment 184,500 127,100
Accumulated depreciation—equipment (36,900) (28,700)
Total $614,779 $554,320
Liabilities and Stockholders’ Equity Accounts payable $ 36,679 $ 29,520
Bonds payable 246,000 246,000
Common stock, $1 par 164,000 131,200
Retained earnings 168,100 147,600
Total $614,779 $554,320
Additional information:
1. Operating expenses include depreciation expense of $34,440 ($16,400 of depreciation expense for buildings and $18,040 for equipment).
2. Land was sold for cash at book value.
3. Cash dividends of $9,840 were paid.
4. Net income for 2022 was $30,340.
5. Equipment was purchased for $75,440 cash. In addition, equipment costing $18,040 with a book value of $8,200 was sold for $6,560 cash.
6. 32,800 shares of $1 par value common stock were issued in exchange for land with a fair value of $32,800.
Prepare a statement of cash flows for the year ended December 31, 2022, 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).)