The following three accounts appear in the general ledger of Pharoah Corp. during 2025. Jan. 1 Bal. July 31 Purchase of equipment Sept. 2 Purchase of equipment Bal. Jan. 1 Bal. Nov. 10 Accumulated depreciation on equipment sold Bal. Jan. 1 Bal. Aug, 23 Dividends (cash) Bal. Equipment 152,000 Nov. 10 Cost of equipment sold 66,500 50,350 222,300 Accumulated Depreciation-Equipment 67,450 Dec. 31 Depreciation for year 13,300 15,200 Retained Earnings 154,850 78,850 99,750 Dec. 31 Net income 68,400 46,550 26,600 From the postings in the accounts, indicate how the information is reported by preparing a partial statement of cash flows using the indirect method. The loss on disposal of plant assets was $7,600. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Transcribed Image Text:

The following three accounts appear in the general ledger of Pharoah Corp. during 2025. Equipment Jan. 1 Bal. 152,000 Nov. 10 Cost of equipment sold 46,550 July 31 Purchase of equipment 66,500 Sept. 2 Purchase of equipment 50,350 Bal. 222,300 Accumulated Depreciation-Equipment Jan. 1 Bal. 67,450 Dec. 31 Depreciation for year 26,600 Nov. 10 Accumulated depreciation on equipment sold 15,200 Bal. 78,850 Retained Earnings Jan. 1 Bal. 99,750 Dec. 31 Net income 68,400 Aug 23 Dividends (cash) 13,300 Bal. 154,850 From the postings in the accounts, indicate how the information is reported by preparing a partial statement of cash flows using the indirect method. The loss on disposal of plant assets was $7,600. (Show amounts that decrease cash flow with either a sign e.g -15,000 or in parenthesis e.g. (15,000).) The following three accounts appear in the general ledger of Pharoah Corp. during 2025. Equipment Jan. 1 Bal. 152,000 Nov. 10 Cost of equipment sold 46,550 July 31 Purchase of equipment 66,500 Sept. 2 Purchase of equipment 50,350 Bal. 222,300 Accumulated Depreciation-Equipment Jan. 1 Bal. 67,450 Dec. 31 Depreciation for year 26,600 Nov. 10 Accumulated depreciation on equipment sold 15,200 Bal. 78,850 Retained Earnings Jan. 1 Bal. 99,750 Dec. 31 Net income 68,400 Aug 23 Dividends (cash) 13,300 Bal. 154,850 From the postings in the accounts, indicate how the information is reported by preparing a partial statement of cash flows using the indirect method. The loss on disposal of plant assets was $7,600. (Show amounts that decrease cash flow with either a sign e.g -15,000 or in parenthesis e.g. (15,000).)