CHENG INC. Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Investments Equipment 2019 2018 S 80,800 48,400 92,800 117,500 28,400 143,000 33,000 102,850 26,000 114,000 270,000 242,500 Accumulated depreciation equipment (50,000)(52,000 5682,90 $14,750 Total Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings $112,000 67,300 17,000 150,000 220,000 175,000 105,450 S682,500 $514,750 16,500 110,000 224,000 Total CHENG INC. Income Statement For the Year Ended December 31, 2019 Sales revenue Less: 392,780 Cost of goods sold Operating expenses, excluding depreciation $135,460 12,410 46,500 27,280 4,730 7,500 Income tax expense Interest expense Loss on disposal of plant assets 233,880 $158,900 Net income Additional information: 1. New equipment costing $85,000 was purchased for cash during the year. 2. Old equipment having an original cost of S57,500 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. Instructions Prepare a statement of cash flows using the indirect method. Cash from operating activities $180,250