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Pharoah Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative balance sheet and income statement for Pharoah as of May 31, 2020, are as follows. The company is preparing its statement of cash flows.

PHAROAH COMPANY COMPARATIVE BALANCE SHEET AS OF MAY 31
		2020		2019
Current assets
Cash		$28,400		$19,900
Accounts receivable		75,200		58,200
Inventory		219,100		248,900
Prepaid expenses		9,000		7,100
Total current assets		331,700		334,100
Plant assets
Plant assets		595,400		498,400
Less: Accumulated depreciationplant assets		149,000		125,400
Net plant assets		446,400		373,000
Total assets		$778,100		$707,100
Current liabilities
Accounts payable		$121,700		$115,700
Salaries and wages payable		46,900		72,800
Interest payable		26,900		25,200
Total current liabilities		195,500		213,700
Long-term debt
Bonds payable		70,000		100,000
Total liabilities		265,500		313,700
Stockholders equity
Common stock, $10 par		370,000		280,000
Retained earnings		142,600		113,400
Total stockholders equity		512,600		393,400
Total liabilities and stockholders equity		$778,100		$707,100

PHAROAH COMPANY INCOME STATEMENT FOR THE YEAR ENDED MAY 31, 2020
Sales revenue		$1,257,000
Cost of goods sold		718,300
Gross profit		538,700
Expenses
Salaries and wages expense		253,400
Interest expense		75,800
Depreciation expense		23,600
Other expenses		8,100
Total expenses		360,900
Operating income		177,800
Income tax expense		42,700
Net income		$135,100

The following is additional information concerning Pharoahs transactions during the year ended May 31, 2020.

1.		All sales during the year were made on account.
2.		All merchandise was purchased on account, comprising the total accounts payable account.
3.		Plant assets costing $97,000 were purchased by paying $26,000 in cash and issuing 7,100 shares of stock.
4.		The other expenses are related to prepaid items.
5.		All income taxes incurred during the year were paid during the year.
6.		In order to supplement its cash, Pharoah issued 1,900 shares of common stock at par value.
7.		Cash dividends of $105,900 were declared and paid at the end of the fiscal year.

(b)

Prepare a statement of cash flows for Pharoah Company for the year ended May 31, 2020, using the direct method. (A reconciliation of net income to net cash provided is not required.)

(c)

Using the indirect method, calculate only the net cash flow from operating activities for Pharoah Company for the year ended May 31, 2020

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