Data for Cheng Inc. are presented in P13-9A. Further analysis reveals that accounts payable pertain to merchandise creditors.

In P13-9A, Condensed financial data of Cheng Inc. follow.

Additional information:
1. New equipment costing $85,000 was purchased for cash during the year.
2. Old equipment having an original cost of $57,500 was sold for $1,500 cash.
3. Bonds matured and were paid off at face value for cash.
4. A cash dividend of $40,350 was declared and paid during the year.

Instructions
Prepare a statement of cash flows for Cheng Inc. using the directmethod.

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CHENG INC. Comparative Balance Sheets December 31 2014 Assets Cash Accounts receivable Inventory Prepaid expenses Investments Equipment Accumulated depreciation-equipment 2015 80,800 92,800 117,500 28,400 143,000 270,000 (50,000) $682,500 48,400 33,000 102,850 26,000 114,000 242,500 (52,000) 514,750 Total Liabilities and Stockholders' Equity 67,300 17,000 150,000 175,000 105,450 514,750 Accounts payable Accrued ex $112,000 16,500 110,000 220,000 224,000 $682,500 payablPayable Common stock Retained earnings Total CHENG INC. Income Statement For the Year Ended December 31, 2015 Sales revenue $392,780 Less: Cost of goods sold Operating expenses, excluding $135,460 depreciation Depreciation expense Income tax expense Interest expense Loss on disposal of plant assets 12,410 46,500 27,280 4,730 7,500 233,880 $158,900 Net income