Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
CHENG INC. Comparative Balance Sheets December 31 Assets 2017 2016 Cash $118,000 $47,800 Accounts receivable 91,600 32,200 Inventory 113,000 102,900 Prepaid expenses 29,400 26,000 Investments
CHENG INC. Comparative Balance Sheets December 31 Assets 2017 2016 Cash $118,000 $47,800 Accounts receivable 91,600 32,200 Inventory 113,000 102,900 Prepaid expenses 29,400 26,000 Investments 141,000 113,500 Equipment 265,700 241,600 Accumulated depreciation-equipment (46,000 ) (51,400 ) Total $712,700 $512,600 Liabilities and Stockholders Equity Accounts payable $111,300 $67,900 Accrued expenses payable 16,100 17,000 Bonds payable 110,700 149,500 Common stock 219,500 174,200 Retained earnings 255,100 104,000 Total $712,700 $512,600 CHENG INC. Income Statement For the Year Ended December 31, 2017 Sales revenue$391,900 Less: Cost of goods sold $135,900 Operating expenses, excluding depreciation 11,600 Depreciation expense 29,500 Income tax expense 26,300 Interest expense 4,400 Loss on disposal of plant assets 7,500 215,200 Net income $176,700 Additional information: 1.New equipment costing $79,400 were purchased for cash during the year. 2.Old equipment having an original cost of $55,300 was sold for $12,900 cash. 3.Bonds matured and were paid off at face value for cash. 4.A cash dividend of $25,600 was declared and paid during the year. Prepare a statement of cash flows using the indirect method
CHENG INC.
Comparative Balance Sheets
December 31
Assets
2017
2016
Cash
$118,000
$47,800
Accounts receivable
91,600
32,200
Inventory
113,000
102,900
Prepaid expenses
29,400
26,000
Investments
141,000
113,500
Equipment
265,700
241,600
Accumulated depreciation-equipment
(46,000
)
(51,400
)
Total
$712,700
$512,600
Liabilities and Stockholders Equity
Accounts payable
$111,300
$67,900
Accrued expenses payable
16,100
17,000
Bonds payable
110,700
149,500
Common stock
219,500
174,200
Retained earnings
255,100
104,000
Total
$712,700
$512,600
CHENG INC.
Income Statement
For the Year Ended December 31, 2017
Sales revenue$391,900
Less:
Cost of goods sold
$135,900
Operating expenses, excluding depreciation
11,600
Depreciation expense
29,500
Income tax expense
26,300
Interest expense
4,400
Loss on disposal of plant assets
7,500
215,200
Net income
$176,700
Additional information:
1.New equipment costing $79,400 were purchased for cash during the year.
2.Old equipment having an original cost of $55,300 was sold for $12,900 cash.
3.Bonds matured and were paid off at face value for cash.
4.A cash dividend of $25,600 was declared and paid during the year.
Prepare a statement of cash flows using the indirect method
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started