2019 Problem 17-10A Condensed financial data of Cheng Inc. follow. CHENG INC. Comparative Balance Sheets December 31 Assets 2020 Cash $99,400 Accounts receivable 92,200 Inventory 112,900 Prepaid expenses 29,600 Investments 140,300 Equipment 269,100 Accumulated depreciation equipment (46,600) Total $696,900 $48,000 32,600 101,600 25,200 113,000 241,700 (52,000) $510,100 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $111,500 16,300 116,800 220,900 231,400 $696,900 $67,500 17,300 149,600 175,800 99,900 $510,100 $392,900 CHENG INC. Income Statement For the Year Ended December 31, 2020 Sales revenue Less: Cost of goods sold $135,000 Operating expenses, excluding depreciation 11,400 Depreciation expense 39,300 Income tax expense 27,100 Interest expense 4,000 Loss on disposal of plant assets 6,700 223,500 $169,400 Net income Additional information: 1. New equipment costing $80,100 was purchased for cash during the year. 2. Old equipment having an original cost of $52,700 was sold for $1,300 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $37,900 was declared and paid during the year. Further analysis reveals that accounts payable pertain to merchandise creditors. Prepare a statement of cash flows for Cheng Inc. using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) CHENG INC. Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities X > Gain on Sale of Plant Assets 333300 $ Less V cash payments: To Suppliers 102300 For Operating Expenses 14800 X For Income Taxes 271001 X For Interest 4000 148200 Net Cash Provided by Operating Activities v 185100 Cash Flows from Investing Activities Sale of Plant Assets 1300 Purchase of Investments