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Comparative balance sheets for Pharash Company are as follows.
Pharash Company
Comparative Balance Sheets
December 31
Assets
2025
2024
Cash
$80,500
$22,300
Accounts receivable
84,500
74,200
Inventory
180,000
190,200
Land
82,000
104,000
Equipment
264,500
204,000
Accumulated depreciation-equipment
(63,500)
(64,000)
Total
$627,500
$558,500
Liabilities and Stockholders' Equity
Accounts payable
$33,700
$47,300
Bonds payable
164,000
210,000
Common stock ($1 par)
222,800
142,000
Retained earnings
207,000
159,200
Total
$627,500
$558,500
Additional information:
1. Net income for 2025 was $126,000.
2. Cash dividends of $47,000 were declared and paid.
3. Bonds payable with a carrying value of $46,000 were redeemed for $46,000 cash.
4. Common stock was issued at par for $60,000 cash.
5. Depreciation expense was $23,500.
6. Sales revenue for the year was $970,000.
7. Land was sold at cost, and equipment was purchased for cash.
Prepare a worksheet for a statement of cash flows for 2025 using the indirect method. Enter the reconciling items directly on the
worksheet. Show amounts that decrease cash flow with either a - sign, e.g. -15,000 or in parenthesis e.g. (15,000).
PHARASH COMPANY
Worksheet-Statement of Cash Flows
Balance Sheet Accounts
Balance
12/31/24
Debit
Reconciling
Debits
Credits
Total
Total
Statement of Cash Flows Effects
Operating activities
Investing activities
Financing activities
Totals
Totals
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