Condensed financial data of Pharoah Company follow Pharoah Company Comparative B

Question

Condensed financial data of Pharoah Company follow Pharoah Company Comparative Balance Sheets December 31 Asset Cash Accounts receivable Inventory Prepaid expenses Long-term investments Plant assets Accumulated depreciation Total 2017 2016 $154,328 167,698 214,875 54,244 263,580 544,350 $ 92,444 72,580 196,444 49,660 208,190 463,175 (95,500) (99,320) $1,303,575 $983,173 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total 31,515 210,100 420,200 446,940 $1,303,575 194,820 128,543 40,110 278,860 334,250 201,410 $983,173 Pharoah Company Income Statement Data For the Year Ended December 31, 2017 Sales revenue $741,959 Less: Cost of goods sold Operating expenses, excluding depreciation Depreciation expense Income tax expense Interest expense Loss on disposal of plant assets $258,729 23,703 88,815 52,105 9,034 14,325 446,711 Net income $295,248 Additional information: 1. New plant assets costing $191,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $109,825 and accumulated depreciation of $92,635 were sold for $2,865 cash 3. Bonds payable matured and were paid off at face value for cash 4. A cash dividend of $49,718 was declared and paid during the year

Explanation / Answer

Pharoah Company Statement of Cash flows For the year ended December 31, 2017 Cash flows from Operating activities: Net income          2,95,248 Adjustments to reconcile net income to net cash from operating activities : Depreciation              88,815 Loss on disposal of plant Asset              14,325 Changes in current operating assets and liabilities Change in Accounts Receivable            -95,118 Change in Inventories            -18,431 Change in Prepaid Expenses              -4,584 Change in Accounts Payable              66,277 Change in Accrued Expense Payable              -8,595              42,689 Net cash flow from operating activities          3,37,937 Cash flow form Investing activities Purchase of Plant Assets        -1,91,000 Sale proceeds of old plant assets                2,865 Longterm Investment made            -55,390 Net cash flow used for investing activities        -2,43,525 Cash flow from Financing Activities Bonds payable paid            -68,760 Common Stock Issues              85,950 Dividend Paid            -49,718 Net cash flow used for financing activities            -32,528 Net cash generated during the year              61,884 Cash at the beginning of the year              92,444 Cash at the end of the year          1,54,328

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---