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Condensed financial data of Cheng Inc. follow. CHENG INC. Comparative Balance Sheets December 31 Assets 2019 Cash Accounts receivable Inventory Prepaid expenses Investments Equipment Accumulated
Condensed financial data of Cheng Inc. follow. CHENG INC. Comparative Balance Sheets December 31 Assets 2019 Cash Accounts receivable Inventory Prepaid expenses Investments Equipment Accumulated depreciation-equipment Total 2020 $109,700 92,200 113,000 29,900 139,800 265,400 (47,200) $702,800 $47,900 32,700 101,200 25,900 113,500 242,200 (53,000) $510,400 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $111,800 16,100 118,700 219,400 236,800 $702,800 $67,300 17,100 149,600 174,500 101,900 $510,400 CHENG INC. Income Statement For the Year Ended December 31, 2020 Sales revenue $392,800 $392,800 CHENG INC. Income Statement For the Year Ended December 31, 2020 Sales revenue Less: Cost of goods sold $134,900 Operating expenses, excluding depreciation 12,400 Depreciation expense 31,100 Income tax expense 26,900 Interest expense 4,100 Loss on disposal of plant assets 7,500 Net income 216,900 $175,900 Additional information: 1. New equipment costing $80,500 was purchased for cash during the year. 2. Old equipment having an original cost of $57,300 was sold for $12,900 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $41,000 was declared and paid during the year. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) CHENG INC. Statement of Cash Flows For the Year Ended December 31, 2020 T Cash Flows from Operating Activities A CHENG INC. Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities T Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities T Depreciation Expense Loss on Disposal of Plant Assets Increase in Accounts Receivable Increase in Inventory T Increase in Prepaid Expenses T Increase in Accounts Payable A T Decrease in Accrued Expenses Payable A Net Cash Provided by Operating Activities I Cash Flows from Investing Activities Sale of Plant Assets Purchase of Investments * Sale of Plant Assets Net Cash Used by Investing Activities T Cash Flows from Financing Activities A | Payment of Cash Dividends Redemption of Bonds Redemption of Common Stock Redemption of Bonds Redemption of Common Stock T Net Cash Used by Financing Activities Net Increase in Cash T Cash at Beginning of Period Cash at End of Period Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT
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