Condensed financial data of Cheng Inc. follow. CHENG INC. Comparative Balance Sheets December 31 Assets 2017 2016 Cash Accounts receivable Inventory Prepaid expenses Investments Equipment Accumulated depreciation-equipment Total $107,500 91,400 112,200 29,100 140,700 265,200 (47,500) $698,600 $47,700 33,900 102,200 25,400 114,600 241,200 (52,900) $512,100 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $112,000 16,000 111,300 219,700 239,600 $698,600 $67,500 17,100 149,900 174,800 102,800 $512,100 Total $698,600 $512,100 $392,200 CHENG INC. Income Statement For the Year Ended December 31, 2017 Sales revenue Less: Cost of goods sold $135,000 Operating expenses, excluding depreciation 13,000 Depreciation expense 29,800 Income tax expense 26,300 Interest expense 4,300 Loss on disposal of plant assets 7,500 Net income 215,900 $176,300 Additional information: 1. New equipment costing $79,700 were purchased for cash during the year. 2. Old equipment having an original cost of $55,700 was sold for $13,000 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $39,500 was declared and paid during the year. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease CHENG INC. Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities