Question

The following information is available for Pharoah Company for 2022.

Cash used to purchase treasury stock		$ 82,251
Cash dividends paid		37,278
Cash paid for interest		38,304
Net income		793,953
Sales revenue		1,371,420
Cash paid for taxes		169,290
Cash received from customers		968,031
Cash received from sale of building (at book value)		337,896
Cash paid for operating expenses		131,670
Beginning cash balance		18,810
Cash paid for goods and services		477,261
Cash received from issuing common stock		607,050
Cash paid to redeem bonds at maturity		342,000
Cash paid to purchase equipment		193,572

Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Pharoah Company Statement of Cash Flows—Direct Method Choose the accounting period December 31, 2022For the Year Ended December 31, 2022For the Quarter Ended December 31, 2022

Answer 1

Statement of cash flow using direct method

Cash flow from operating activities
Cash received from customers	968031
Cash paid for goods and services	-477261
Cash paid for operating expenses	-131670
Cash paid for interest	-38304
Cash paid for taxes	-169290
Net cash flow from operating activities		151506
Cash flow from investing activities
Cash paid to purchase equipment	-193572
Cash received from sale of building (at book value)	337986
Net cash flow from investing activities		144414
Cash flow from financing activities
Cash received from issuing common stock	607050
Cash used to purchase treasury stock	-82251
Cash dividends paid	-37278
Cash paid to redeem bonds at maturity	-342000
Net cash flow from financing activities		145521
Net cash flow		441441
Beginning Cash		18810
Ending Cash		460251