Condensed financial data of Cheng Inc. follow:

CHENG INC.

Comparative Balance Sheets

December 31

Assets	2014	2013
Cash Accounts Receivable Inventory Prepaid expenses Investments Equipments Accumulated depreciation-equipment	90800 92800 112500 28400 138000 270000 (50000)	48400 33000 102850 26000 114000 242500 (52000)
total	682500	514750

Liabilities and stockholders equity	2014	2013
Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings	112000 16500 110000 220000 224000	67300 17000 150000 175000 105450
total	682500	514750

CHENG INC.

Income Statement

For the Year Ended December 31, 2014

Sales $392,780

Less:

Cost of goods sold $135,460

Operating expenses, excluding

Depreciation 12,410

Depreciation expense 46,500

Income taxes 27,280

Interest expense 4,730

Loss on sale of plant assets 7,500 233,880

Net income $158,900

Additional information:

1. New plant assets costing $85,000 were purchased for cash during the year.

2. Old plant assets having an original cost of $57,500 were 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.