Condensed financial data of Cheng Inc. follow. 2014 CHENG INC. Comparative Balance Sheets December 31 Assets 2015 Cash $89,980 Accounts receivable 91,050 Inventory 111,220 Prepaid expenses 28,620 Investments 137,930 Equipment 270,920 Accumulated depreciation equipment (50,230 ) Total $679,490 $48,630 32,840 102,890 25,410 114,660 242,300 (52,980) $513,750 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $111,480 16,300 116,200 220,580 214,930 $679,490 $67,490 17,240 149,300 175,770 103,950 $513,750 CHENG INC. Income Statement For the Year Ended December 31, 2015 Total $679,490 $513,750 $391,670 CHENG INC. Income Statement For the Year Ended December 31, 2015 Sales Less: Cost of goods sold 135,140 Operating expenses, excluding depreciation 11,500 Depreciation expense 45,510 Income tax expense 27,720 Interest expense 4,400 Loss on disposal of plant asstets 6,540 Net income 230,810 $160,860 Additional information: 1. New Equipment costing $84,430 were purchased for cash during the year. 2. Old Equipment having an original cost of $55,810 was sold for $1,010 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $49,880 was declared and paid during the year. Prepare a statement of cash flows using the indirect method. (Show amounts that de (15,000).) CALCU CHENG INC. Statement of Cash Flows For the Year Ended December 31, 2015 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense Loss on Disposal of Plant Assets Increase in Accounts Payable Decrease in Accrued Expenses Payable Increase in Prepaid Expenses Increase in Inventory Increase in Accounts Receivable Net Cash Provided by Operating Activities . Cash Flows from Investing Activities Sale of Plant Assets Purchase of Investments Purchase of Plant Assets Net Cash used by Investing Activities Cash Flows from Financing Activities - Issuance of Common Stock Redemption of Bonds Payment of Cash Dividends Net Cash used by Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period