CHENG INC. Comparative Balance Sheets December 31 Assets 2020 Cash $107,600 Accounts receivable 91,900 Inventory 111,900 Prepaid expenses 29,400 Investments 139,800 Equipment 264,100 Accumulated depreciation-equipment (47,700) Total $697,000 2019 $47,800 33,100 102,100 25,900 113,700 241,800 (51,000) $513,400 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $111,400 16,500 117,100 219,000 233,000 $697,000 $67,400 17,200 149,500 175,100 104,200 $513,400 CHENG INC. Income Statement For the Year Ended December 31, 2020 $391,500 Sales revenue Less: 125 ann $391,500 CHENG INC. Income Statement For the Year Ended December 31, 2020 Sales revenue Less: Cost of goods sold $135,600 Operating expenses, excluding depreciation 12,500 Depreciation expense 34,900 Income tax expense 27,400 Interest expense 4,800 Loss on disposal of plant assets 7,500 Net income 222,700 $168,800 Additional information: 1. New equipment costing $80,600 was purchased for cash during the ye. 2. Old equipment having an original cost of $58,300 was sold for $12,600 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $40,000 was declared and paid during the year. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash fle CHENG INC. Statement of Cash Flows Adjustments to reconcile net income to