urrent Attempt in Progress

Pharoah Co$.$ reported $$142,000$ of net income for $2025.$ The accountant, in preparing the statement of cash flows, noted the following items occurring during $2025$ that might affect cash flows from operating activities.

Pharoah purchased $100$ shares of treasury stock at a cost of $$20$ per share. These shares were then resold at $$25$ per share.

Pharoah sold $100$ shares of IBM common at $$200$ per share. The acquisition cost of these shares was $$130$ per share. There were no unrealized gains or losses recorded on this investment in $2025.$

Pharoah revised its estimate for bad debts. Before $2025,$ Pharoah's bad debt expense was $1\%$ of its receivables. In $2025,$ this percentage was increased to $2\%.$ Net accounts receivable decreased by $$12,000$ during $2025.$

Pharoah issued $500$ shares of its $$10$ par common stock for a patent. The market price of the shares on the date of the transaction was $$23$ per share.

Depreciation expense is $$39,800.$

Pharoah Co$.$ holds $40\%$ of the Nirvana Company's common stock as a long$-$term investment. Nirvana Company reported $$28,900$ of net income for $2025.$

Nirvana Company paid a total of $$1,800$ of cash dividends to all investees in $2025.$

Pharoah declared a $10\%$ stock dividend. One thousand shares of $$10$ par common stock were distributed. The market price at date of issuance was $$20$ per share.

Prepare a schedule that shows the net cash flow from operating activities using the indirect method. Assume no items other than those listed above affected the computation of $2025$ net cash flow from operating activities. $($Show amounts that decrease cash flow with either a$-$sign eg$.-15,000$ or in parenthesis eg$.(15,000).)$

PHAROAH CO$.$

Statement of Cash Flows $($Partial$)$

For the Year Ended December $31,2025$

Cash Flows from Operating Activities

Net Income

Adjustments to reconcile net income to

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Income from Equity Method Investment $$

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Net Cash Provided by Operating Activities

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