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 $ $ $ $
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 103.4C
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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
|
||||
(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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