Cheng Inc. Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses 2020 2019 $ 80,800 $ 48,400 Non 92,800 33,000 117,500 102,850 Investments 28,400 143,000 114,000 26,000 P 17- Equipment 270,000 242,500 Accumulated depreciation-equipment (50,000) Total $682,500 (52,000) $514,750 Cash Liabilities and Stockholders' Equity Accounts payable $112,000 $ 67,300 Accrued expenses payable 16,500 17,000 Bonds payable 110,000 150,000 Common stock Retained earnings Total 220,000 175,000 224,000 105,450 $682,500 $514,750 Cheng Inc. Income Statement For the Year Ended December 31, 2020 Sales revenue $392,780 Less: Cost of goods sold $135,460 Operating expenses, excluding depreciation 12,410 Depreciation expense 46,500 Income tax expense 27,280 Interest expense 4,730 Loss on disposal of plant assets 7,500 233,880 Net income $158,900 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