CHENG INC Comparative Dalance Sheets December 31 2017 2016 Assets Cash Accounts receivable Inventory Prepaid expenses Investments Equipment Accumulated depreciation-equipment $100,500 $47,200 92,900 33,600 111,600 102,100 29,600 25,800 139,200 113,200 269,700 242,700 (47,100) (51,600) $696,400 $513,000 Total Liablities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings $111,500 $67,700 17,000 115,300 149,600 220,200 174,300 233,100 104,400 $696,400 $513,000 16,300 Total CHENG INC. Income Statement For the Year Ended December 31, 2017 $391,600 Sales revenue Less: Cost of goods sold $135,500 11,500 40,000 28,000 4,600 Operating expenses, excluding depreciation Depreciation expense Income tax expense Interest expense 7,000 226,600 Loss on disposal of plant assets Net income $165,000 Additional information 1. New equipment costing $79,700 were purchased for cash during the year 2. Oid equipment having an original cost of $52.700 was sold for $1,200 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $36,300 was declared and paid during the year. Further analysis reveals that accounts payable pertain to merchandise creditors