Bonds payable Common stock Retained earnings 150,000 175,000 105,450 $682,500 $514,750 110,000 220,000 224,000 Total CHENG INC. Income Statement For the Year Ended December 31, 2017 Sales revenue Less: $392,780 Cost of goods sold Operating expenses, excluding depreciation Depreciation expense Income tax expense Interest expense Loss on disposal of plant assets $135,460 12,410 46,500 27,280 4,730 7,500 233,880 $158,900 Net income Additional information: 1. New equipment costing s85,000 were 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. Prepare a statement of cash flows using the indirect method. (Show amounts that decreas (15,000).) CHENG INC. Statement of Cash Flows For the Month Ended December 31, 2017 Cash Flows from Operating Activities Bonds payable Common stock Retained earnings 150,000 175,000 105,450 $682,500 $514,750 110,000 220,000 224,000 Total CHENG INC. Income Statement For the Year Ended December 31, 2017 Sales revenue Less: $392,780 Cost of goods sold Operating expenses, excluding depreciation Depreciation expense Income tax expense Interest expense Loss on disposal of plant assets $135,460 12,410 46,500 27,280 4,730 7,500 233,880 $158,900 Net income Additional information: 1. New equipment costing s85,000 were 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. Prepare a statement of cash flows using the indirect method. (Show amounts that decreas (15,000).) CHENG INC. Statement of Cash Flows For the Month Ended December 31, 2017 Cash Flows from Operating Activities